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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.

300
600
800
1000

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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
43196
53196
40096

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

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

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Chemical Engineering Plant Economics
Total product cost of a chemical plant does not include the __________ cost.

Operating labour, supervision and supplies
Overhead and utilities
Depreciation, property tax and insur-rance
Market survey

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Chemical Engineering Plant Economics
Factory manufacturing cost is the sum of the direct production cost

Plant overhead cost and administrative expenses
Fixed charges and plant overhead cost
And plant overhead cost
None of these

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Chemical Engineering Plant Economics
The payback method for the measurement of return on investment

Underemphasises liquidity
Gives a correct picture of profitability
Does not measure the discounted rate of return
Takes into account the cash inflows after the recovery of investments

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