Chemical Engineering Plant Economics
Operating profit of a chemical plant is equal to

Profit before interest and tax i.e., net profit + interest + tax
Profit after tax
Net profit + tax
Profit after tax plus depreciation

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Chemical Engineering Plant Economics
An annuity is a series of equal payments occuring at equal time intervals, and this amount includes the sum of all payments plus interest, if allowed to accumulate at a definite rate of interest from the time of initial payment to the end of annuity term. Ordinary annuity is used in the calculation of the

Cash ratio
Discrete compound interest
Depreciation by sinking fund method
Manufacturing cost

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Chemical Engineering Plant Economics
Chemical engineering plant cost index is used for finding the present cost of a particular chemical plant, if the cost of similar plant at some time in the past is known. The present cost of the plant = original cost x (index value/(index value at original cost was obtained)The most major component of this cost index is

Pumps and compressor
Process instruments and control
Fabricated equipment and machinery
Electrical equipments and material

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