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Chemical Engineering Plant Economics

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

Non-linearily
Logarithmically
Linearly
Exponentially

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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

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

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Chemical Engineering Plant Economics
Nominal and effective interest rates are equal, when the interest is compounded

Annually
Quarterly
Semi-annually
In no case, they are equal

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Chemical Engineering Plant Economics
According to six-tenths-factor rule, if the cost of a given unit at one capacity is known, then the cost of similar unit with '' times the capacity of the first unit is approximately equal to __________ times the cost of the initial unit.

N0.6
N
√n
N0.4

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Chemical Engineering Plant Economics
If an amount R is paid at the end of every year for 'n' years, then the net present value of the annuity at an interest rate of i is

[((1 + i)n - 1)/i(1 + i)n]
R(1 + i)n
R[((1 + i)n - 1)/i]
R/(1 + i)n

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Chemical Engineering Plant Economics
The economic life of a large chemical process plant as compared to a small chemical plant is

Only slightly more
Much more
Slightly less
Almost equal

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