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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
Annual depreciation cost are not constant when, the __________ method of depreciation calculation is used.

Present worth
Straight line
Declining balance
Sinking fund

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Chemical Engineering Plant Economics
For a given fluid, as the pipe diameter increases, the pumping cost

Decreases
Remains the same
May increase or decrease, depending upon whether the fluid is Newtonian or non-Newtonian
Increases

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Chemical Engineering Plant Economics
In an ordinary chemical plant, electrical installation cost may be about

10-15% of purchased equipment cost
3-10% of fixed capital investment
Neither A nor B
Either A or B

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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.

43196
60196
53196
40096

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Chemical Engineering Plant Economics
If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be __________ percent.

10
>20
< 20
20

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Chemical Engineering Plant Economics
Which of the following methods of depreciation calculations results in book values greater than those obtained with straight line method?

Sinking fund method
Multiple straight line method
Sum of the years digit method
Declining balance method

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