Chemical Engineering Plant Economics
The depreciation during the year 'n', in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage 'N' to the

Initial cost
Difference between initial cost and salvage value
Depreciation during the (n - 1)th year
Book value at the end of (n - 1)th year

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Chemical Engineering Plant Economics
In a manufacturing industry, break even point occurs, when the

Annual sales equals the fixed cost
Total annual product cost equals the total annual sales
Total annual rate of production equals the assigned value
Annual profit equals the expected value

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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

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

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