Chemical Engineering Plant Economics
Pick out the correct statement.

Scrap value is the net amount of money obtainable from the sale of used property over and above any charges involved in its removal & sale
Sum-of-the-years-digits methods of depreciation calculation accounts for the interest on the investment
Difference between income and expense is termed as gross revenue
Unamortised cost is the difference between the original cost of a property and all the depreciation charges made to dat

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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 insulation cost
Cost for piping
Electrical installation cost
Equipment installation cost

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Chemical Engineering Plant Economics
Chemical engineering plant cost index is used for finding the present cost of a particular chemical plant, if the cost of similar plant at some time in the past is known. The present cost of the plant = original cost x (index value/(index value at original cost was obtained) The most major component of this cost index is

Electrical equipments and material
Process instruments and control
Pumps and compressor
Fabricated equipment and machinery

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