ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.24 : (a) The net present value of an engineering project is given by V. Let Q = summation of [ T / (1 + I) ^ N ] from N = A to N = B, where P = project cost, T = tax inflow, N = duration. If V = P + Q where P = -$1000, T = $275, I = 0.12 (means 12 % , capital cost of project per year), A = 1 year, B = 5 years, calculate the value of V. (b) The present value tax shields are W = $ (11.9725, 9.1486, 6.5579, 4.1811, 2.0005) in 5 beginning balances of an engineering project. Find the adjusted present value of the engineering project X, when X = V + (summation of the values of W).
Answer Posted / kangchuentat
ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.24 : (a) Let ^ to be mathematical symbol for power. From N = A = 1 year to N = B = 5 years, Q = summation of [ T / (1 + I) ^ N ] = T { summation of [ (1 + I) ^ (-N) ] } = $275 { summation of [ (1.12) ^ (-N) ] } = $275 [ (1.12) ^ (-1) + (1.12) ^ (-2) + (1.12) ^ (-3) + (1.12) ^ (-4) + (1.12) ^ (-5) ] = $991.31. Then V = P + Q = -$1000 + $991.31 = -$8.6865. (b) X = V + (summation of the values of W) = -$8.6865 + $ (11.9725 + 9.1486 + 6.5579 + 4.1811 + 2.0005) = $25.1741. The answer is given by Kang Chuen Tat; PO Box 6263, Dandenong, Victoria VIC 3175, Australia; SMS +61405421706; chuentat@hotmail.com; http://kangchuentat.wordpress.com.
| Is This Answer Correct ? | 0 Yes | 0 No |
Post New Answer View All Answers
i m a frsh chemical engineer now i m confuse to attend the interview so anybody pls send model question papers to this christ_vivek33@yahoo.com
What are the reasons of removal of particles from effluent gas?
Who built the first production scale pla (polylactic acid) facility?
Hi, I am in need of interview questions from Engineers india limited in chemical engineering.if any one has kindly post it to me soon.
What is cathodic protection, how it works in Turbine condensers ?
What are the steps taken to operate a tank-blanketing valve?
Where barrel pump use?
What is minimum flow required of NG having BTU value of 920 btu/scf for flame stability of LBTU gas of BTU value 220 BTU/SCF against the flow 80KPPH.
What is load?
We are having proplem with the persperation smell in ETT/ECHO room in our cardiac hospital.The 2 Ton of AC is not conditioning the environment. We have to use exhaust fan to through out of the room bad air. Could anyone suggest how to coup with this effectively using chemical engineering. Any permanent solution to neutralise the bad smell.The Air freshners are not doing enough instead making a bad odour.
Explain what are the methods involved to test helium leak testing in a vacuum system?
sir,please give me some exam paper for referance. Thanks & Regards,
hi, i have completed B.tech Chemical enggneering, plz can anyone provide me GVK BIO company's interview questions. iam attending the interview for the first time..
How can you separate hydrogen peroxide into hydrogen and oxygen?
Hello i am a chemical engineer presently looking for a job i am applying many jobs in naukri and in all job portals but i am not getting any call or interview so kindly some one help me in this regard soundar