Cash reserve
Capital
Turnover
Investment
C. Turnover
2
10
30
50
More
Less
Same
No
Equipment selection
Product evaluation
Equipment design
Cost estimation
Thermal
Nuclear
Hydroelectric
Fast breeder reactor
Coal gasification
Steam reforming of naphtha
Electrolysis of water
Coke oven gas
Annually
Fortnightly
Monthly
Half-yearly
Berl saddles
Raschig rings
Pall rings
Intalox saddles
1000 (1 + 0.1/4)20
1000 (1 + 0.1)20
1000 (1 + 0.1/4)5
1000 (1 + 0.1/2)5
Longer tubes are less expensive per unit heat transfer area as compared to shorter tubes
A cost index is merely a number for a given year showing the cost at that time relative to a certain base year
Turnover ratio of a chemical plant is the ratio of gross annual sales to the fixed capital investment
Plates with butt welded joints are less expensive compared to lap welded joints, because squaring of plates is not necessary
One
Three
Six
Twelve
Overhead cost
Fixed expenses
General expenses
Direct production cost
And economic life of a project are the same
Is the length of time over which the earnings on a project equals the investment
Is affected by the variation in earnings after the recovery of the investment
All (A), (B) and (C)
Multiple straight line method
Sinking fund method
Declining balance method
Sum of the years digit method
Gross margin = net income - net expenditure
Net sales realisation (NSR) = Gross sales - selling expenses
At breakeven point, NSR is more than the total production cost
Net profit = Gross margin - depreciation - interest
Fixed charges
Plant overheads
Direct products cost
Administrative expenses
15
35
55
75
Fixed
Overhead
Utilities
Capital
Competition from other manufactures
Product distribution
Opportunities
Economics
Initial cost
Book value at the end of (n - 1)th year
Depreciation during the (n - 1)th year
Difference between initial cost and salvage value
Raw materials inventory
Utilities plants
Process equipment
Emergency facilities
Total annual rate of production equals the assigned value
Total annual product cost equals the total annual sales
Annual profit equals the expected value
Annual sales equals the fixed cost
Linearly
Non-linearly
Exponentially
Logarithmically
1
5
10
30
p[(1+i)n - 1)]
p(1 + i)n
p(1 - i)n
p(1 + in)
p.i.n.
p(1 + i.n)
p(1 + i)n
p(1 - i.n)
Current asset
Current liability
Long term debt
Profit
Property
Excise
Income
Capital gain
Inventories
Marketable securities
Chemical equipments
None of these
0.1 to 1
1 to 2
10 to 20
50 to 60
The annual depreciation rate for machinery and equipments in a chemical process plant is about 10% of the fixed capital investment
Annual depreciation rate of buildings in a chemical plant is about 3% of its initial cost
Insurance rates on annual basis in a chemical plant may be about 1% of the fixed capital investment
In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR)