Chemical Engineering Plant Economics
Expenditure on research and development (R & D) is categorised as the __________ , while making an estimate of the total product cost for a chemical plant.

Overhead cost
Fixed expenses
Direct production cost
General expenses

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Chemical Engineering Plant Economics
Depreciation

Does figure in the calculation of income tax liability on cash flows from an investment
Is the unavoidable loss in the value of the plant, equipment and materials with lapse in time
Costs (on annual basis) are constant when the straight line method is used for its determination
All of these

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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

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

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Chemical Engineering Plant Economics
Fixed capital investment of a chemical plant is the total amount of money needed to supply the necessary plant and manufacturing facilities plus the working capital for operation of the facilities. Which of the following components of fixed capital investment requires minimum percentage of it?

Cost for piping
Electrical installation cost
Equipment installation cost
Equipment insulation cost

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