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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
Construction expenses are roughly __________ percent of the total direct cost of the plant.

30
2
50
10

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Chemical Engineering Plant Economics
The amount of compounded interest during 'n' interest periods is

P[(1+i)n-1)]
P(1 + i)n
P(1 - i)n
P(1 + in)

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Chemical Engineering Plant Economics
'P' is the investment made on an equipment, 'S' is its salvage value and 'n is the life of the equipment in years. The depreciation for rath year by the sum-of years digit method will be

M/n x (P - S)
(P - S)/n
2(n - m + 1)/n(n + 1) x (P - S)
1 - (P/S)1/m

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Chemical Engineering Plant Economics
A balance sheet for a chemical plant shows its financial condition at any given date. It does not contain the __________ of the plant.

Current asset
Long term debt
Profit
Current liability

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Chemical Engineering Plant Economics
Following the six-tenth factor rule, if a log-log plot of capacity of the equipment vs. cost of the equipment is made, then a straight line is obtained, whose slope is equal to

0.6
0.1
0.2
0.8

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Chemical Engineering Plant Economics
Functional depreciation of an equipment is the measure of decrease in its value due to its

Breakdown or accident
Obsolescence
Ageing
Wear and tear

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