GATE-CH-1991-10-ii-c-eco-2mark

The total capital investment for a chemical plant is Rs. 1,000,000 and the working capital is Rs. 100,000. If a turnover ratio is 1, the gross annual sales will be:

• Rs. 800,000

• Rs. 900,000

• Rs. 1,000,000

• Rs. 1,100,000

GATE-CH-1997-1-31-eco-1mark

For shell-and-tube heat exchangers, with increasing heat transfer area, the purchased cost per unit heat transfer area

• increases

• decreases

• remains constant

• passes through a maxima

GATE-CH-2005-28-eco-1mark

For a solid processing plant, the delivered equipment cost is $ 10 million. Using Lang multiplication method the total capital investment, in millions of $, is

• 46
• 57
• 100
• 200

GATE-CH-2005-29-eco-1mark

The cost of a drum dryer is $ 10 millions. The cost of a drum dryer with double the surface area in millions of $ is

• \(2\times10\)
• \(3^{0.6}\times10\)
• \(5^{0.6}\times10\)
• \(2^{0.6}\times10\)

GATE-CH-2005-30-eco-1mark

The cost of a distillation column in the year 2000 is \(x\) dollars. What is the cost of the column in dollars in the year 2010 given the cost indices for the years 2000 and 2010 are 480 and 520 respectively?

• \((520/480)^2x\)
• \((480/520)x\)
• \((520/480)x\)
• \((520/480)^{0.6}x\)

GATE-CH-PI-2007-16-eco-1mark

During an economic analysis of a capital investment proposal, the cost that can be ignored is

• Sunk cost
• Fixed cost
• Marginal cost
• Variable cost

GATE-CH-2002-21-eco-5mark

A canteen requires hot water for its dish-washing. For this purpose, the canteen draws 0.4 kg/s of water at 298 K and heats it to 353 K in a fired-heater. The wastewater leaving the dishwasher is at 333 K. In order to save energy, its is proposed to recover heat from the wastewater to partially heat up the incoming water in a counter-current exchanger as shown schematically below:

Assume there is no loss of water in the dishwasher and a minimum approach temperature of 10 K should be maintained in the exchanger.

(a) If the overall heat transfer coefficient in the exchanger is 1200 W/m\(^2\).K and the specific heat capacity of water is 4186 J/kg.K, compute the area of the heat exchanger (in m\(^2\), significant to one decimal).

{#1}

(b) If the cost of the exchanger in 1982 was \(2\times A^{0.41}\) (in million dollars), where \(A\) is the exchanger area in m\(^2\) and the Marshall and Swift cost indices in 1982 and 2000 are 315 and 400 respectively, determine the cost (in million dollars, significant to one decimal) of the exchanger in the year 2000.

{#2}

GATE-CH-2006-60-eco-2mark

In a desalination plant, an evaporator of area 200 m\(^2\) was purchased in 1996 at a cost of $ 300,000. In 2002, another evaporator of area 50 m\(^2\) was added. What was the cost of the second evaporator (in $)? Assume that the cost of evaporators scales as (capacity)\(^{0.54}\). The Marshall and Swift index was 1048.5 in 1996 and 1116.9 in 2002.

• 130,500

• 139,100

• 141,900

• 151,200

GATE-CH-1988-19-i-eco-2mark

A heat exchanger of area 10 m\(^2\) costed Rs. 50,000 in the year 1985. What is the estimated cost (in Rs.) of a 15 m\(^2\) exchanger in 1987. Assume that the cost index in 1985 was 270 and in 1987 it is 320.

• Answer

GATE-CH-1994-29-b-eco-2mark

If the delivered costs of equipments of a fluid processing plant is Rs. 4 million, what is the capital cost (in million rupees) of the plant?

• Answer

GATE-CH-1988-9-a-i-eco-1mark

The two important components of capital investment are --------------- capital and --------------- capital.

• Answer

GATE-CH-1988-9-a-iv-eco-1mark

In cost estimation, the effect of inflation on equipment cost is taken care of by ---------------

• Answer