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

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

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Chemical Engineering Plant Economics
An annuity is a series of equal payments occuring at equal time intervals, and this amount includes the sum of all payments plus interest, if allowed to accumulate at a definite rate of interest from the time of initial payment to the end of annuity term. Ordinary annuity is used in the calculation of the

Cash ratio
Manufacturing cost
Discrete compound interest
Depreciation by sinking fund method

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Chemical Engineering Plant Economics
Fixed capital investment of a chemical plant is the total amount of money needed to supply the necessary plant and manufacturing facilities plus the working capital for operation of the facilities. Which of the following components of fixed capital investment requires minimum percentage of it?

Equipment installation cost
Equipment insulation cost
Electrical installation cost
Cost for piping

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