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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
A machine has an initial value of Rs. 5000, service life of 5 years and final salvage value of Rs. 1000. The annual depreciation cost by straight line method is Rs.

1000
600
800
300

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Chemical Engineering Plant Economics
If 'S' is the amount available after 'n' interest periods for an initial principal 'P' with the discrete compound interest rate 'i', the present worth is given by

S/(1 + n)i
S/(1 + in)
S/(1 + i)n
(1 + i)n/S

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Chemical Engineering Plant Economics
The value of a property decreases __________ with time in straight line method of determining depreciation.

Logarithmically
Exponentially
Linearly
Non-linearily

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Chemical Engineering Plant Economics
A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual interest rate is 10%. The original cost of the reactor was Rs. 80000. The book value of the reactor after 5 years using sinking fund depreciation method will be Rs.

60196
53196
40096
43196

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Chemical Engineering Plant Economics
A balance sheet for an industrial concern shows

Only fixed assets
Only current and fixed assets
Only current assets
The financial condition at any given time

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Chemical Engineering Plant Economics
Fixed charges for a chemical plant does not include the

Rent of land and buildings
Property tax, insurance and depreciation
Interest on borrowed money
Repair and maintenance charges

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