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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is

1.5%
150%
15%
10%

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Chemical Engineering Plant Economics
If 'S' is the amount available after 'n' interest periods for an initial principal 'P' with the discrete compound interest rate 'i', the present worth is given by

S/(1 + n)i
S/(1 + in)
S/(1 + i)n
(1 + i)n/S

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Chemical Engineering Plant Economics
If an amount R is paid at the end of every year for 'n' years, then the net present value of the annuity at an interest rate of i is

R/(1 + i)n
[((1 + i)n - 1)/i(1 + i)n]
R(1 + i)n
R[((1 + i)n - 1)/i]

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

Almost equal
Only slightly more
Much more
Slightly less

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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 machine has an initial value of Rs. 5000, service life of 5 years and final salvage value of Rs. 1000. The annual depreciation cost by straight line method is Rs.

1000
800
600
300

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