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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
Nominal and effective interest rates are equal, when the interest is compounded

In no case, they are equal
Annually
Quarterly
Semi-annually

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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
60196
53196
40096

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Chemical Engineering Plant Economics
Following the six-tenth factor rule, if a log-log plot of capacity of the equipment vs. cost of the equipment is made, then a straight line is obtained, whose slope is equal to

0.6
0.8
0.2
0.1

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Chemical Engineering Plant Economics
Direct costs component of the fixed capital consists of

Labour costs
Contingencies
Raw material costs
Onsite and offsite costs

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Chemical Engineering Plant Economics
Maximum production start up cost for making a chemical plant operational is about __________ percent of the fixed capital cost.

1
5
10
30

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Chemical Engineering Plant Economics
'Six-tenth factor' rule is used for estimating the

Utilities cost
Equipment cost by scaling
Cost of piping
Equipment installation cost

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