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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
The economic life of a large chemical process plant as compared to a small chemical plant is

Slightly less
Only slightly more
Much more
Almost equal

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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
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.

60196
40096
53196
43196

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Chemical Engineering Plant Economics
Which of the following is a component of working capital investment?

Maintenance and repair inventory
Utilities plants
Process equipments
Depreciation

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Chemical Engineering Plant Economics
Which of the following is not a component of the fixed capital for a chemical plant facility?

Utilities plants
Emergency facilities
Process equipment
Raw materials inventory

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Chemical Engineering Plant Economics
Utilities cost in the operation of chemical process plant comes under the

Plant overhead cost
Direct production cost
Fixed charges
General expenses

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