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Chemical Engineering Plant Economics

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

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

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Chemical Engineering Plant Economics
Generally, income taxes are based on the

Fixed cost
Gross earning
Total income
Total product cost

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Chemical Engineering Plant Economics
Construction expenses are roughly __________ percent of the total direct cost of the plant.

10
30
2
50

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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.

43196
53196
40096
60196

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Chemical Engineering Plant Economics
Manufacturing cost in a chemical company does not include the

Administrative expenses
Direct products cost
Fixed charges
Plant overheads

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Chemical Engineering Plant Economics
For a typical project, the cumulative cash flow is zero at the

End of the project life
Start up
Break even point
End of the design stage

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