Question 54 - There are 2 alternatives of investment. Choice 1 : A trader offers you an investment opportunity where your investment of A$15000 presently will be A$18000 after 4 years. Choice 2 : A bank offers you 5 % annual return for your initial investment of A$15000. Question a : What is the equivalent bank payment after 4 years? Question b : By using the concept of equivalence in engineering economy, which is the better choice, betwen 1 and 2, that will be more profitable after 4 years?
- 1 Answers
- 1684 Views
- I also Faced
- E-Mail Answers
Answer Posted / kang chuen tat (malaysia - pen
Answer 54 - (a) For Choice 2, A$15000 x 1.05 = A$15750 after 1 year, A$15750 x 1.05 = A$16537.50 after 2 years, A$16537.50 x 1.05 = A$17364.375 after 3 years, A$17364.375 x 1.05 = A$18232.6 after 4 years. (b) The gain of Choice 2 > Choice 1 with A$18232.6 > A$18000, then Choice 2 is preferred. 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 is defferance between tubular & automotive plate battery
Explain what is the significance of the minimum flow required by a pump?
What information is needed to specify a mixer?
hello everyone do anyone have interview questions for any chemical industry please email me at ravijallu.nitj@gmail.com
What is the largest application for surfactants?
what is designing step of heat exchanger
How can you estimate a gas flow based on two pressure measurements?
Explain about different types of lamps?
What is a barometric condenser?
Define pcbs?
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 carbon sequestration?
What are some typical applications for glass-lined reactors?
Jspl question paper for freshers requirements chemical engineering diploma
how much maximum power can be generated by 320v, 10kg-cm synchronus motor if shaft is roteted mechanically at 50 to 60 rpm?
