## Chemical Engineering Plant Economics In declining balance method of depreciation calculation, the

Annual depreciation is the fixed percentage of the property value at the beginning of the particular year
None of these
Value of the asset decreases linearly with time
Annual cost of depreciation is same every year

## Chemical Engineering Plant Economics If an amount R is paid at the end of every year for 'n' years, then the net present value of the annuity at an interest rate of i is

[((1 + i)n - 1)/i(1 + i)n]
R(1 + i)n
R[((1 + i)n - 1)/i]
R/(1 + i)n

## Chemical Engineering Plant Economics Annual depreciation cost are not constant when, the __________ method of depreciation calculation is used.

Sinking fund
Straight line
Declining balance
Present worth

## 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

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

Increase
Decrease
None of these
No change

## 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
Equipment insulation cost
Equipment installation cost
Electrical installation cost