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.
Options
A. 40096
B. 43196
C. 53196
D. 60196
Correct Answer
60196
Chemical Engineering Plant Economics problems
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1. Optimum economic pipe diameter for fluid is determined by the
Options
A. viscosity of the fluid.
B. density of the fluid.
C. total cost considerations (pumping cost plus fixed cost of the pipe).
Correct Answer: total cost considerations (pumping cost plus fixed cost of the pipe).
2. 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?