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Chemical Engineering Plant Economics

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

Breakdown or accident
Ageing
Obsolescence
Wear and tear

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Chemical Engineering Plant Economics
Equipment installation cost in a chemical process plant ranges from __________ percent of the purchased equipment cost.

35 to 45
10 to 20
70 to 80
55 to 65

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Chemical Engineering Plant Economics
A shareholder has __________ say in the affairs of company management compared to a debenture holder.

No
Less
Same
More

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Chemical Engineering Plant Economics
If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be __________ percent.

>20
10
< 20
20

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Chemical Engineering Plant Economics
The economic life of a large chemical process plant as compared to a small chemical plant is

Much more
Slightly less
Only slightly more
Almost equal

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Chemical Engineering Plant Economics
'P' is the investment made on an equipment, 'S' is its salvage value and 'n is the life of the equipment in years. The depreciation for rath year by the sum-of years digit method will be

2(n - m + 1)/n(n + 1) x (P - S)
M/n x (P - S)
(P - S)/n
1 - (P/S)1/m

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