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
53196
43196
40096

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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

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

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Chemical Engineering Plant Economics
In declining balance method of depreciation calculation, the

Value of the asset decreases linearly with time
None of these
Annual depreciation is the fixed percentage of the property value at the beginning of the particular year
Annual cost of depreciation is same every year

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