Chemical Engineering Economics Model(2nd)

'Six-tenth factor' rule is used for estimating the

1 Mark(s)

Equipment installation cost
Cost of piping
Equipment cost by scaling
Utilities cost

Expenditure on research and development (R & D) is categorised as the __________ , while making an estimate of the total product cost for a chemical plant.

1 Mark(s)

Overhead cost
Fixed expenses
General expenses
Direct production cost

Pick out the wrong statement.

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Net sales realisation (NSR) = Gross sales - selling expenses
Net profit = Gross margin - depreciation - interest
At break even point, NSR is more than the total production cost
Gross margin = net income - net expenditure

The 'total capital investment' for a chemical process plant comprises of the fixed capital investment and the

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Indirect production cost
Overhead cost
Direct production cost
Working capital

An annuity is a series of equal payments occuring at equal time intervals, and this amount includes the sum of all payments plus interest, if allowed to accumulate at a definite rate of interest from the time of initial payment to the end of annuity term. Ordinary annuity is used in the calculation of the

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Discrete compound interest
Manufacturing cost
Cash ratio
Depreciation by sinking fund method

Chemical Engineering Economics Model(2nd) : Question 1 of 5