Fixed capital investment of a chemical plant is the total amount of money needed to supply the necessary plant and manufacturing facilities plus the working capital for operation of the facilities. Which of the following components of fixed capital investment requires minimum percentage of it?
Options
A. Electrical installation cost.
B. Equipment installation cost.
C. Cost for piping.
D. Equipment insulation cost.
Correct Answer
Equipment insulation cost.
Chemical Engineering Plant Economics problems
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1. The amount of compounded interest during 'n' interest periods is
Correct Answer: total cost considerations (pumping cost plus fixed cost of the pipe).
7. 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.