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Chemical Engineering Plant Economics

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.

10
20
>20
< 20

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Chemical Engineering Plant Economics
An investment of Rs. 1000 is carrying an interest of 10% compounded quarterly. The value of the investment at the end of five years will be

1000 (1 + 0.1/4)20
1000 (1 + 0.1)20
1000 (1 + 0.1/2)5
1000 (1 + 0.1/4)5

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Chemical Engineering Plant Economics
In a chemical process plant, the total product cost comprises of manufacturing cost and the

Overhead cost
None of these
General expenses
R & D cost

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Chemical Engineering Plant Economics
Which of the following is not a component of depreciation cost?

Loss due to obsolescence of the equipment
Loss due to decrease in the demand of product
Repairs and maintenance cost
Loss due to accident/breakdown in the machinery

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Chemical Engineering Plant Economics
Out of the following, the depreciation calculated by the __________ method is the maximum.

Sinking fund
Sum of the years digit
Straight line
Diminishing balance

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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.

53196
43196
40096
60196

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