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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
A series of equal payments (e.g., deposit or cost) made at equal intervals of time is known as

Future worth
Capital charge factor
Annuity
Perpetuity

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Chemical Engineering Plant Economics
If 'S' is the amount available after 'n' interest periods for an initial principal 'P' with the discrete compound interest rate 'i', the present worth is given by

S/(1 + i)n
S/(1 + n)i
S/(1 + in)
(1 + i)n/S

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Chemical Engineering Plant Economics
Fixed charges for a chemical plant does not include the

Interest on borrowed money
Property tax, insurance and depreciation
Rent of land and buildings
Repair and maintenance charges

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Chemical Engineering Plant Economics
For a given fluid, as the pipe diameter increases, the pumping cost

May increase or decrease, depending upon whether the fluid is Newtonian or non-Newtonian
Decreases
Increases
Remains the same

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Chemical Engineering Plant Economics
If an amount R is paid at the end of every year for 'n' years, then the net present value of the annuity at an interest rate of i is

R(1 + i)n
R/(1 + i)n
[((1 + i)n - 1)/i(1 + i)n]
R[((1 + i)n - 1)/i]

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

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