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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
1000
800

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

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

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Chemical Engineering Plant Economics
Which of the following is not a component of working capital?

Semi-finished products in the process
Finished products in stock
Raw materials is stock
Transportation facilities

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

Obsolescence
Breakdown or accident
Ageing
Wear and tear

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Chemical Engineering Plant Economics
The value of a property decreases __________ with time in straight line method of determining depreciation.

Exponentially
Non-linearily
Logarithmically
Linearly

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