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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
The amount of compounded interest during 'n' interest periods is

P(1 + i)n
P(1 + in)
P[(1+i)n-1)]
P(1 - i)n

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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

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

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

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

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

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

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Chemical Engineering Plant Economics
The amount of simple interest during 'n' interest period is (where, i = interest rate based on the length of one interest period, p = principal)

P(1 - i.n)
P.i.n.
P(1 + i.n)
P(1 + i)n

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Chemical Engineering Plant Economics
Equipment installation cost in a chemical process plant ranges from __________ percent of the purchased equipment cost.

35 to 45
10 to 20
70 to 80
55 to 65

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