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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
Cost incurred towards __________ in a chemical plant is a component of the utilities cost.

Property protection
Running a control laboratory
Water supply
Medical services

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Chemical Engineering Plant Economics
'Lang factor' is defined as the ratio of the capital investment to the delivered cost of major equipments. The value of 'Lang factor' for fixed capital investment, for a solid-fluid processing chemical plant ranges from

6.2 to 6.4
1.2 to 1.4
4.2 to 4.4
2.5 to 2.7

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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

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

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Chemical Engineering Plant Economics
The amount of simple interest during 'n' interest period is (where, i = interest rate based on the length of one interest period, p = principal)

P.i.n.
P(1 - i.n)
P(1 + i.n)
P(1 + i)n

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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.

40096
53196
43196
60196

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Chemical Engineering Plant Economics
Generally, income taxes are based on the

Gross earning
Fixed cost
Total income
Total product cost

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