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Posted Date: 08 Jul 2008 Posted By: Sree.... Member Level: Platinum
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2006 Andhra Pradesh State Jawaharlal Nehru Technological University B.Tech CHEMICAL ENGINEERING PLANT DESIGN & ECONOMICS Question paper
Code No: NR410803 NR
IV B.Tech I Semester Supplementary Examinations, March 2006
CHEMICAL ENGINEERING PLANT DESIGN & ECONOMICS
(Chemical Engineering)
Time: 3 hours Max Marks: 80
Answer any FIVE Questions
All Questions carry equal marks
1. Ethylene is produced commercially in a variety of different process. Feed stocks for
these various processes range from refinery gas, Ethane, Propane, butane, natural
gasoline, light and heavy naphthas to gas and oil and heavier fractions. Make a
preliminary material balance for the production of 50 million kg/year of ethylene.
Assume an operating factor of 90. [16]
2. (a) Write a brief note on the balance sheet. [4]
(b) Prepare a balance sheet applicable at the date when the X Corporation had
the following assets and equities: [12]
Cash Rs.20,000
Accounts payable:
B Company 2,000
C Company 8,000
Accounts receivable 6,000
Inventories 15,000
Mortgage payable 5,000
Common stock sold Rs.50,000
Machinery and equipment(at present value) 18,000
Furniture and fixtures(at present value) 5,000
Goverment Bonds 3,000
Surplus 2,000
3. Write in detail about the following methods for estimating capital investment
(a) Detailed-item estimate. [4]
(b) Unit-cost estimate. [6]
(c) Percentage of delivered-equipment cost. [6]
4. (a) Write short notes on profitability. [8]
(b) Explain in detail about the design-engineering practice for interest and invest-
ment costs. [8]
5. (a) Complete fire and allied coverage insurance for one unit of a plant requires
an annual payment of Rs 7000 based on an investment value of Rs 10,00,000.
If income taxes over a 10-year period averages 30% of gross earnings, by how
much is the net income after taxes reduced during this 10-year period owing
to the cost of insurance? [12]
(b) What is business- interruption insurance? Mention its salient features. [4]
6. (a) What is sinking fund method for the determination of depreciation? [4]
(b) Derive an equation for asset value of equipment after few years of use by the
application of sinking fund method. [6]
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Code No: NR410803 NR
(c) Compare sinking fund method with straight-line method. [6]
7. A plant is being designed which requires a fixed capital investment of Rs.100 lakhs.
It is estimated that the working capital will amount to 25% of the total investment
and annual depreciation costs are estimated to be 10% of the fixed capital invest-
ment. If the annual profit will be Rs.30 Lakhs, determine the standard per cent
return on the total investment and the minimum payout period. [16]
8. Explain the concept of economic balance with suitable examples. What are the
factors considered in determining the optimum insulation thickness? [16]
2 of 2
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