Basics 1 min read
Simple Interest
Simple interest is a basic formula for calculating how much interest to apply to a principal balance. The formula for simple interest…
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Uncategorized 1 min read
Heat Exchanger Effectiveness
Calculating heat exchanger effectiveness allows engineers to predict how a given heat exchanger will perform a new job. Essentially, it…
General Concepts 2 min read
Column Operation
The extractive distillation unit of this cyclohexane production plant consists of two distillation columns (Figure 10), which we can easily…
Basics 2 min read
Operating Cash Flow Margin
Operating cash flow margin is cash from operating activities as a percentage of sales in a given period. How It…
Basics 1 min read
Operating Cash Flow Demand (OCFD)
Operating cash flow demand (OCFD) is the present value of the minimum amount of cash a capital investment must generate…
Basics 2 min read
Negative Amortizing Loan
Negative amortizing loans are loans in which the loan’s principal balance increases even though the borrower is making payments on…
Basics 2 min read
Negative Amortization
Negative amortization occurs when the principal balance on a loan (usually a mortgage) increases because the borrower’s payments don’t cover the…
Basics 4 min read
Internal Rate of Return (IRR)
An investment’s internal rate of return (IRR) is the discount rate that makes the net present value of the investment’s cash…
Basics 2 min read
Future Value (FV)
Future value (FV) refers to a method of calculating how much the present value (PV) of an asset or cash…
General Concepts 2 min read
Construction of the Residue Curve
Equation 3 and 4 were used to sketch the corresponding residue curve for the three species. From the above information,…
Basics 2 min read
Adjusted Present Value
Adjusted present value refers to the net present value (NPV) or investment adjusted for the interest and tax advantages of…
Basics 3 min read
Working Capital
Working capital is money available to a company for day-to-day operations. How It Works (Example): Here is some balance sheet…
