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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
With increase in the discounted cash flow rate of return, the ratio of the total present value to the initial investment of a given project

Remains constant
Decreases
Increases linearly
Increases

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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.

53196
60196
40096
43196

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Chemical Engineering Plant Economics
Total product cost of a chemical plant does not include the __________ cost.

Overhead and utilities
Depreciation, property tax and insur-rance
Market survey
Operating labour, supervision and supplies

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Chemical Engineering Plant Economics
Effluent treatment cost in a chemical plant is categorised as the __________ cost.

Fixed
Utilities
Capital
Overhead

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Chemical Engineering Plant Economics
__________ of depreciation calculation does not take into account the interest on investments.

All of these
Sum of the years-digits method
Sinking fund method
Present worth method

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

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

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