Chemical Engineering Plant Economics
Which of the following is not a component of depreciation cost?

Loss due to obsolescence of the equipment
Repairs and maintenance cost
Loss due to accident/breakdown in the machinery
Loss due to decrease in the demand of product

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Chemical Engineering Plant Economics
Depreciation

Costs (on annual basis) are constant when the straight line method is used for its determination
Is the unavoidable loss in the value of the plant, equipment and materials with lapse in time
Does figure in the calculation of income tax liability on cash flows from an investment
All of these

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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

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

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Chemical Engineering Plant Economics
Payback period

And economic life of a project are the same
All of these
Is the length of time over which the earnings on a project equals the investment
Is affected by the variation in earnings after the recovery of the investment

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