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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.

600
300
1000
800

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Chemical Engineering Plant Economics
Functional depreciation of an equipment is the measure of decrease in its value due to its

Wear and tear
Ageing
Breakdown or accident
Obsolescence

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Chemical Engineering Plant Economics
'Utilities' in a chemical process plant includes compressed air, steam, water, electrical power, oxygen, acetylene, fuel gases etc. Utility costs for ordinary chemical process plants ranges roughly from __________ percent of the total product cost.

35 to 45
10 to 20
25 to 35
1 to 5

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Chemical Engineering Plant Economics
Cost of instrumentation in a modern chemical plant ranges from __________ percent of the total plant cost.

60 to 70
5 to 10
40 to 50
20 to 30

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Chemical Engineering Plant Economics
Annual depreciation costs are constant, when the __________ method of depreciation calculation is used.

Declining balance
Sum of the years digit
None of these
Straight line

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Chemical Engineering Plant Economics
With increase in the discounted cash flow rate of return, the ratio of the total present value to the initial investment of a given project

Increases
Decreases
Increases linearly
Remains constant

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