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Chemical Engineering Plant Economics

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

R & D cost
General expenses
None of these
Overhead cost

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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
800
1000
600

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Chemical Engineering Plant Economics
Factory manufacturing cost is the sum of the direct production cost

None of these
Fixed charges and plant overhead cost
Plant overhead cost and administrative expenses
And plant overhead cost

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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
60196
40096

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Chemical Engineering Plant Economics
With increase in the discounted cash flow rate of return, the ratio of the total present value to the initial investment of a given project

Remains constant
Increases linearly
Decreases
Increases

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

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

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