Plant design and Economics quiz 2015

PLANT DESIGN AND ECONOMICS QUIZ

Q. 1 A proposed chemical plant is estimated to have a fixed capital(FC) of Rs.24 crores. assuming other cost to be small, the total investment may be taken to be same as FC. after commissioning(at t=0 years), the annual profit before tax is Rs. 10 crores/per year (at the end of year)and the expected life of the plant is 10 years. the tax rate is 40% per year and a linear depreciation is allowed at 10% per year. the salvage value is zero. if the annual interest rate is 12%, the NPV (net present value or worth) of the project in crores of rupees (up to one decimal place) is......

Q. 2 The cost of two independent process variable f₁ and f₂ affects the total cost C_r (in lakhs of rupees) of the process as per the following function:

The lowest total cost C_r in lakhs of rupees (up to one decimal place), is.........