ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.21 : The cost of building a biochemical processing plant is increasing due to inflation. Let I = inflation rate, R = nominal interest rate, r = real interest rate. According to Fisher Equation, (1 + r)(1 + I) = (1 + R). According to General Inflation Equation, R = r + I. (a) By assuming that both r and I are fairly small, prove by mathematical calculations that complicated Fisher Equation could be simplified into the General Inflation Equation. (b) By using 2 first order Taylor expansions in the linear approximation, namely 1 / (1 + x) ≈ (1 - x), (1 + x)(1 + y) ≈ 1 + x + y, show by mathematical calculations that (1 + r) = (1 + R) / (1 + I) could be approximated by r ≈ R - I.
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ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.21 : (a) Let (1 + R) = (1 + r)(1 + I) = 1 + r + I + rI, R = r + I + rI. When r ≈ I ≈ fairly small, R ≈ r + I (proven). (b) Let 1 / (1 + I) ≈ (1 - I), then (1 + r) ≈ (1 + R)(1 - I) ≈ 1 + R - I, then r ≈ R - I (shown). 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.
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Question 63 – Autocad computer program is used to draw a pipe that is used to transport natural gases for processing. Actual length of the pipe is 10 metres. The pipe has cross sectional area of circle in shape with measured circumference of s = 3 metres. (a) If 10 units are used to represent the actual length of the pipe in computerised engineering drawing, find the diameter of the pipe, d that will be shown in the engineering drawing. (b) If one unit in the program equals to 1 centimetre, find the scale used in the computer program.
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BIOPROCESS ENGINEERING - EXAMPLE 14.3 : The kinetic behavior of an enzyme could be described using Michalis - Menten equation : Vo = Vmax [S] / (Km + [S]). Derive this equation from [ES] = [E]total [S] / (Km + [S]), Vmax = Kcat [E]total, Vo = Kcat [ES].
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QUANTUM COMPUTING - EXAMPLE 32.3 : A system of linear congruences consists of 3 equations : X ≡ 1 (mod 3), X ≡ 3 (mod 5), X ≡ 4 (mod 6). X has positive values. (a) List the values of these equations from 1 to 35. Then find the minimum value of X. (b)(i) Find the least common multiple (LCM) of b = 3, 5 and 6 where X ≡ a (mod b). (ii) If b - a has the same value of all equations above, then X + (b - a) is divisible by LCM. Find the value of minimum value of X via LCM division.
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ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.23 : An engineering company would like to produce 10000 units of control instruments. Let selling price per unit = $10, variable cost per unit = $2, overall fixed cost = $30000. (a) Calculate the income obtained when all units are sold out successfully. (b) Find the overall cost of production. (c) Calculate the percentage of gross profit obtained based on the answers in (a) and (b). (d) Find the minimum units that need to be sold out successfully in order to prevent losses. (e) How many minimum units of instruments that need to be produced in order to prevent losses, if all units produced are sold out successfully?
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