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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.

Logarithmically
Exponentially
Linearly
Non-linearily

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Chemical Engineering Plant Economics
Direct costs component of the fixed capital consists of

Contingencies
Onsite and offsite costs
Raw material costs
Labour costs

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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.

60196
40096
43196
53196

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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

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

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

10
50
30
2

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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

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

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