ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.13 : (i) In the Present Value Multiplication Rule, let PV = present value, Ra = interest rate for first discount, A = duration for first discount; Rc = interest rate for second discount, C = duration for second discount. Let PV = [ 1 / (1 + Ra) ^ A ] [ 1 / (1 + Rc) ^ C ] where ^ is the symbol of power : 3 ^ 2 = 3 x 3, 2 ^ 3 = 2 x 2 x 2. (a) For discounts involving 8 % / year for 3 years and 10 % / year for 9 years, find the value of PV. (b) If Re = interest rate for third discount, E = duration of third discount, form a mathematical equation of PV as a function of A, C, E, Ra, Rc, Re. Note : Discounts are available in the purchase of certain biochemical engineering instruments. (ii) Let R = nominal interest rate related to growth rate of money, r = real interest rate related to growth rate of purchase power. If I = inflation, where the unit of R, r and I is %, find the mathematical relatonship of r as a function of R and I.



ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.13 : (i) In the Present Value Multiplication Rule,..

Answer / kangchuentat

ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.13 : (i) (a) Let Ra = 0.08, A = 3; Rc = 0.1, C = 9. Then PV = [ 1 / (1 + Ra) ^ A ] [ 1 / (1 + Rc) ^ C ] = [ 1 / (1 + 0.08) ^ 3 ] [ 1 / (1 + 0.1) ^ 9 ] = 0.33666. (b) PV = [ 1 / (1 + Ra) ^ A ] [ 1 / (1 + Rc) ^ C ] [ 1 / (1 + Re) ^ E ]. (ii) r = R - I. 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

More Chemical Engineering Interview Questions

Need to design filter...Length and diamter of shell

1 Answers  


In a triple effect evaporator, the heat transfer for an evaporator is calculated as q = UA (TI – TF) where TI is the initial temperature, TF is the final temperature; U and A are constants. Given that heat transfer for the first evaporator : q(1) = UA (TI – TB); second evaporator : q(2) = UA (TB – TC); third evaporator : q(3) = UA (TC – TF) where q(x) is the heat transfer function, TB is the temperature of second inlet and TC is the temperature of third inlet, prove that the overall heat transfer Q = q(1) q(2) q(3) = UA (TI – TF).

1 Answers  


Explain under what circumstances are vortex flowmeters the most accurate?

0 Answers  


What is condensate lift?

0 Answers  


Jspl question paper for freshers requirements chemical engineering diploma

0 Answers  






Why is the freezer placed at the top in a refrigerator, why not at the bottom ?

2 Answers  


Question 99 - (a) The quantum number m is given by m = -s, -s + 1. If s = 0.5, find the values of m. (b) | T > = (cos T) | V > + (sin T) | H >. The V and H states form a basis for all polarizations. Let cos T = 0.8. (i) If (sin T)(sin T) + (cos T)(cos T) = 1, find the value of sin T. (ii) For | T > = a | V > + b | H >, where a x a represents the probability of | V > and b x b represents the probability of | H >. Which one is more abundant, | V > or | H >? (iii) Find the value of T without using any mathematical tools.

1 Answers  


how much inducation voltage shows in 11 kv

1 Answers  


What are some common causes of control valve noise?

0 Answers  


Can anyone help me to find out the book where all chemical engineer problem is solved.

3 Answers  


QUANTUM BIOLOGY - EXAMPLE 33.9 : (a) Let ^ be the symbol of power where 10 ^ 1 = 10, 10 ^ 2 = 100, 10 ^ 3 = 1000 etc. Total energy consumption of the brain is about 25 Watts, whereas a Blue Gene computer requires 1.5 Mega Watts. Blue Gene computer performs at 1 petaflop. In a human body, there are approximately 10 ^ 16 synapse operations per second i. e. at least 10 petaflops. Prove by calculations that a human brain is more energy efficient than a Blue Gene computer. (b) Quantum effects and quantum entanglement in the brain are identical to quantum gravity and string theory. If one is true, the other is true. What conclusion can be made if quantum effects in the brain and quantum gravity are true?

1 Answers  


Three solid objects of the same material and of equal mass – a sphere, a cylinder (length = diameter) and a cube – are at 5000C initially. These are dropped in a quenching bath containing a large volume of cooling oil each attaining the bath temperature eventually. The time required for 90% change of temperature is smallest for a) cube b) cylinder c) sphere d) equal for all the three whyyyyyyy???????

3 Answers   GATE,


Categories
  • Civil Engineering Interview Questions Civil Engineering (5085)
  • Mechanical Engineering Interview Questions Mechanical Engineering (4452)
  • Electrical Engineering Interview Questions Electrical Engineering (16638)
  • Electronics Communications Interview Questions Electronics Communications (3918)
  • Chemical Engineering Interview Questions Chemical Engineering (1095)
  • Aeronautical Engineering Interview Questions Aeronautical Engineering (239)
  • Bio Engineering Interview Questions Bio Engineering (96)
  • Metallurgy Interview Questions Metallurgy (361)
  • Industrial Engineering Interview Questions Industrial Engineering (259)
  • Instrumentation Interview Questions Instrumentation (3014)
  • Automobile Engineering Interview Questions Automobile Engineering (332)
  • Mechatronics Engineering Interview Questions Mechatronics Engineering (97)
  • Marine Engineering Interview Questions Marine Engineering (124)
  • Power Plant Engineering Interview Questions Power Plant Engineering (172)
  • Textile Engineering Interview Questions Textile Engineering (575)
  • Production Engineering Interview Questions Production Engineering (25)
  • Satellite Systems Engineering Interview Questions Satellite Systems Engineering (106)
  • Engineering AllOther Interview Questions Engineering AllOther (1379)