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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
A machine has an initial value of Rs. 5000, service life of 5 years and final salvage value of Rs. 1000. The annual depreciation cost by straight line method is Rs.

800
1000
300
600

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Chemical Engineering Plant Economics
'Lang factor' is defined as the ratio of the capital investment to the delivered cost of major equipments. The value of 'Lang factor' for fixed capital investment, for a solid-fluid processing chemical plant ranges from

1.2 to 1.4
2.5 to 2.7
6.2 to 6.4
4.2 to 4.4

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Chemical Engineering Plant Economics
The amount of simple interest during 'n' interest period is (where, i = interest rate based on the length of one interest period, p = principal)

P(1 + i.n)
P(1 + i)n
P.i.n.
P(1 - i.n)

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Chemical Engineering Plant Economics
Gantt chart (or Bar chart) is helpful in

Preparing production schedule
Inventory control
Efficient despatching of products
Efficient utilisation of manpower and machines

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Chemical Engineering Plant Economics
Following the six-tenth factor rule, if a log-log plot of capacity of the equipment vs. cost of the equipment is made, then a straight line is obtained, whose slope is equal to

0.2
0.6
0.1
0.8

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Chemical Engineering Plant Economics
Break-even point is the point of intersection of

Fixed cost and total cost
Fixed cost and sales revenue
Total cost and sales revenue
None of these

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MORE MCQ ON Chemical Engineering Plant Economics

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