Interested to Buy Any Domain ? << Click Here >> for more details...
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).
- 1 Answers
- 2125 Views
- I also Faced
- E-Mail Answers
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
What are the different characteristics that can affect the flow of bulk solids and how?
I am pg student of chemical engg. I am intrested Heat Transfer Subject . I want information about advance heat transfer related PG PROJECT
What are the specialized crushing methods?
In a Furnace arch pressure is more than Hearth pressure,then how flue gas travels to stack
Are there flow velocity restrictions to avoid static charge build up in pipelines?
oil field interview question
Is it ever advantageous to use shells in series even though it may not be necessary?
What is the purpose of capacitor? What does capacitor load means? How does it connect?
Explain how instrument air is continually supplied in process plant?
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.
How to caliculate the boil up rate, dia and height in both packed and tray distillation columns and any referance books for the design.
What is a common source of error in determining the percent spent caustic in refinery applications?
Define a solvent?
if i added hypo before DM plant so i will affect my resins of anion or cation. if affect it so do prevent what kind of step should be taken to remove hypo before DM inlet?
what is defferance between tubular & automotive plate battery
