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- 1. www.studentyogi.com www.studentyogi.com Code No: R05410803 Set No. 1 IV B.Tech I Semester Regular Examinations, November 2008 CHEMICAL ENGINEERING PLANT DESIGN AND ECONOMICS (Chemical Engineering) Time: 3 hours Max Marks: 80 Answer any FIVE Questions All Questions carry equal marks 1. (a) Compare batch and continuous operation. (b) Compare materials of construction with homogeneous metal or alloy with glass lined equipment. [8+8] 2. Explain method for Power factor applied to plant capacity ratio for estimating capital investment. [16] 3. Explain the components of xed charges. [16] 4. Explain the following: (a) Future worth (b) Nominal Interest rate (c) What will be the total amount available 10 years from now if Rs. 2,00,000 is deposited at the present time with nominal interest at the rate of 10 percent compounded semiannually? [5+5+6] 5. (a) De ne: i. Normal tax ii. Surtax iii. Capital gains tax iv. Excess pro ts tax. (b) What is the in uence of depreciation costs on income tax? Brie y explain. (c) Write a brief note about tax returns. [8+4+4] 6. In order to make it worthwhile to purchase a new piece of equipment, the annual depreciation costs for the equipment cannot exceed Rs. 3000 at any time. The original cost of the equipment is Rs. 30,000, and it has zero salvage and scrap value. Determine the length of service life necessary if the equipment is depreciated (a) by the sum-of-the-years-digits method, and (b) by the straight-line method. [8+8] 7. (a) Discuss rate of return on initial investment. 1 of 2 www.studentyogi.com www.studentyogi.com
- 2. www.studentyogi.com www.studentyogi.com Code No: R05410803 Set No. 1 (b) A company has three alternative investments which are being considered. Be- cause all three investments are of the same type of unit and yield the same service, only one of the investments can be accepted. The risk factors are the same for all three cases. Company policies, based on the current economic situation dictate that a minimum annual return on the original investment of 15% after taxes must be predicted for any unnecessary investment with interest on investment not included as a cost. (This may be assumed to mean that other equally sound investments yielding a 15% return after taxes are available) Company policies also dictate that, where applicable, straight-line depreciation is used and, for time value of money interpretations, end-of-year cost and pro t analysis is used. Land value and pre-startup costs can be ig- nored. Given the following data, determine which investment, if any, should be made by alternative-analysis pro tability-evaluation method of capitalized costs. In-vest- Total initial Working Salvage value Service Annual cash Annual ment xed capital at end of life, ow to cash num -capital . investment, service years pro ject expenses -ber - investment, Rs. life, after (constant Rs. Rs. taxes, for Rs. each year), Rs. 1 100,000 10,000 10,000 5 See yearly 44,000 tabulation* 2 170,000 10,000 15,000 7 52,000 28,000 (constant) 3 210,000 15,000 20,000 8 59,000 21,000 (constant) *For investment number 1, variable annual cash ow to project is: year 1 = Rs. 30,000, year 2 = Rs. 31,000, year 3 = Rs. 36,000, year 4 = Rs.40,000, year 5 = Rs. 43,000. [4+12] 8. (a) What is optimum economic design? Illustrate the principles of an optimum economic design by means of an example. (b) The following equation shows the e ect of he variables x and y on the total cost for a particular operation: T = 2 33 + 11,900 xy + 1 86 + 10 Determine the values of and which will give the least total cost analytically. [8+8] 2 of 2 www.studentyogi.com www.studentyogi.com
- 3. www.studentyogi.com www.studentyogi.com Code No: R05410803 Set No. 2 IV B.Tech I Semester Regular Examinations, November 2008 CHEMICAL ENGINEERING PLANT DESIGN AND ECONOMICS (Chemical Engineering) Time: 3 hours Max Marks: 80 Answer any FIVE Questions All Questions carry equal marks 1. (a) Explain re and explosion hazards. (b) Discuss preservation and control of Mechanical, Electrical and Chemical haz- ards. [8+8] 2. What is turn over ration? How this turn over ration method is applied to estimate the capital investment? [16] 3. Describe the total manufacturing costs. [16] 4. (a) What is uniform perio dic payment? (b) A concern borrows Rs. 50,000 at an annual, e ective, compound-interest rate of 10 percent. The concern wishes to pay o the debt in 5 years by making equal payments at the end of each year. How much will each payment have to be? [6+10] 5. (a) De ne: i. Normal tax ii. Surtax iii. Capital gains tax iv. Excess pro ts tax. (b) Discuss in detail about the legal responsibilities of a concern with regard to accident and emergencies. [8+8] 6. (a) Write about the following depreciation accounting methods: i. single unit method ii. composite account iii. classi ed account iv. vintage group account (b) Discuss in detail about the sinking fund method. Compare with straight line method. [8+8] 7. (a) Discuss rate of return on initial investment. (b) A company has three alternative investments which are being considered. Be- cause all three investments are of the same type of unit and yield the same service, only one of the investments can be accepted. The risk factors are the same for all three cases. Company policies, based on the current economic 1 of 2 www.studentyogi.com www.studentyogi.com
- 4. www.studentyogi.com www.studentyogi.com Code No: R05410803 Set No. 2 situation dictate that a minimum annual return on the original investment of 15% after taxes must be predicted for any unnecessary investment with interest on investment not included as a cost. (This may be assumed to mean that other equally sound investments yielding a 15% return after taxes are available) Company policies also dictate that, where applicable, straight-line depreciation is used and, for time value of money interpretations, end-of-year cost and pro t analysis is used. Land value and pre-startup costs can be ig- nored. Given the following data, determine which investment, if any, should be made by alternative-analysis pro tability-evaluation method of capitalized costs. In-vest- Total initial Working Salvage value Service Annual cash Annual ment xed capital at end of life, ow to cash num -capital . investment, service years pro ject expenses -ber - investment, Rs. life, after (constant Rs. Rs. taxes, for Rs. each year), Rs. 1 100,000 10,000 10,000 5 See yearly 44,000 tabulation* 2 170,000 10,000 15,000 7 52,000 28,000 (constant) 3 210,000 15,000 20,000 8 59,000 21,000 (constant) *For investment number 1, variable annual cash ow to project is: year 1 = Rs. 30,000, year 2 = Rs. 31,000, year 3 = Rs. 36,000, year 4 = Rs.40,000, year 5 = Rs. 43,000. [4+12] 8. (a) Discuss about the intangible and practical considerations in optimum design. (b) The following equation shows the e ect of he variables x and y on the total cost for a particular operation: T = 2 33 + 11,900 xy + 1 86 + 10 Determine the values of and which will give the least total cost analytically. [8+8] 2 of 2 www.studentyogi.com www.studentyogi.com
- 5. www.studentyogi.com www.studentyogi.com Code No: R05410803 Set No. 3 IV B.Tech I Semester Regular Examinations, November 2008 CHEMICAL ENGINEERING PLANT DESIGN AND ECONOMICS (Chemical Engineering) Time: 3 hours Max Marks: 80 Answer any FIVE Questions All Questions carry equal marks 1. Explain Air Pollution and abatement techniques. [16] 2. Discuss the following methods for estimating capital investment: (a) Percentage of delivered equipment cost (b) Lang factors for approximation of capital investment. [8+8] 3. Explain the modular estimate and unit-operation estimate methods in estimating xed capital investment. [16] 4. An annuity due is being used to accumulate money. Interest is compounded at an e ective annual rate of 10 percent, and Rs. 1,00,000 is deposited at the beginning of each year. What will be the total amount of the annuity due be after 5 years? [16] 5. (a) Give the three di erent types of classi cation of taxes and discuss abut them in detail. (b) Write abut self insurance and discuss about the several ways of applying self insurance. [10+6] 6. A materials testing machine was purchased for Rs. 20,000 and was to be used for 5 years with an expected residual salvage value of Rs. 5000. Determine the annual depreciation charges and year-end book values obtained by using; (a) Straight line depreciation (b) Sum-of-the-digits depreciation (c) Double declining-balance depreciation. [5+5+6] 7. An existing plant has been operating in such a way that a large amount of heat is being lost in the waste gases. It has been proposed to save money by recovering the heat that is now being lost. Four di erent heat exchangers have been designed to recover the heat, and all prices, costs, and savings have been calculated for each of the designs. The results of these calculations are presented in the following: Design No.1 No.2 No.3 No.4 Total initial installed cost, Rs. 10,000 16,000 20,000 26,000 Operating costs, Rs./yr 100 100 100 100 Fixed charges, % of initial cost/yr 20 20 20 20 Value of heat saved, Rs./yr 4,100 6,000 6,900 8,850 The company in charge of the plant demands at least a 10% annual return based 1 of 2 www.studentyogi.com www.studentyogi.com
- 6. www.studentyogi.com www.studentyogi.com Code No: R05410803 Set No. 3 on the initial investment for any unnecessary investment. Only one of the four designs can be accepted. Neglecting e ects due to income taxes and the time value of money, which (if any) of the four designs should be recommended? [16] 8. (a) Describe the general procedure for optimizing two independent variables both analytically and graphically. (b) Discuss about the intangible and practical considerations in optimum design. [8+8] 2 of 2 www.studentyogi.com www.studentyogi.com
- 7. www.studentyogi.com www.studentyogi.com Code No: R05410803 Set No. 4 IV B.Tech I Semester Regular Examinations, November 2008 CHEMICAL ENGINEERING PLANT DESIGN AND ECONOMICS (Chemical Engineering) Time: 3 hours Max Marks: 80 Answer any FIVE Questions All Questions carry equal marks 1. What is a process layout. Explain with a neat diagram the layout of any chemical industry that you have visited. [16] 2. Explain the following methods for estimating capital investment: (a) Investment cost per unit of capacity (b) Turn over ratios. [8+8] 3. Describe the functional estimate and the average unit cost estimate methods in estimating xed capital Investment. [16] 4. Heat exchanger ‘A’ costs Rs. 75,000 with an annual operation cost of Rs. 5,000. A second exchanger ‘B’ costs Rs. 1, 00,000 with an annual operating cost of Rs. 3,000. Both have an estimated service life of 5 years. Exchanger ‘A’ has a salvage value of Rs. 1,000 and exchanger ‘B’ has a salvage value of Rs. 1,500. Money is worth 15 percent: (a) What is the present worth of the service for 10 years provided by the two alternates? (b) What is the present capitalized cost for perpetual service? [8+8] 5. (a) Why are taxes levied? Discuss about property taxes, excise taxes and income taxes. (b) Discuss about self insurance in detail. [10+6] 6. (a) What is the present value of an asset? Distinguish between the various types of present values. (b) Discuss in detail about the declining balance metho d for determining depre- ciation. Compare with the straight line method. [8+8] 7. (a) Discuss rate of return on initial investment. (b) A company has three alternative investments which are being considered. Be- cause all three investments are of the same type of unit and yield the same service, only one of the investments can be accepted. The risk factors are the same for all three cases. Company policies, based on the current economic situation dictate that a minimum annual return on the original investment of 15% after taxes must be predicted for any unnecessary investment with interest on investment not included as a cost. (This may be assumed to mean 1 of 2 www.studentyogi.com www.studentyogi.com
- 8. www.studentyogi.com www.studentyogi.com Code No: R05410803 Set No. 4 that other equally sound investments yielding a 15% return after taxes are available) Company policies also dictate that, where applicable, straight-line depreciation is used and, for time value of money interpretations, end-of-year cost and pro t analysis is used. Land value and pre-startup costs can be ig- nored. Given the following data, determine which investment, if any, should be made by alternative-analysis pro tability-evaluation method of rate of return on initial investment. In-vest- Total initial Working Salvage value at Service Annual cash Annual ment xed -capital capital end of life, ow cash num-ber capital investment, service years to project expenses investment, Rs . life, after taxes, (constant Rs Rs. Rs. for each year), Rs. 1 100,000 10,000 10,000 5 See yearly 44,000 tabulation* 2 170,000 10,000 15,000 7 52,000 28,000 (constant) 3 210,000 15,000 20,000 8 59,000 21,000 (constant) *For investment number 1, variable annual cash ow to project is: year 1 = Rs. 30,000, year 2 = Rs. 31,000, year 3 = Rs. 36,000, year 4 = Rs.40,000, year 5 = Rs. 43,000. [4+12] 8. Explain the general procedure for determining optimum conditions, both analytical and graphical procedures, with one variable and with two or more variables. [16] 2 of 2 www.studentyogi.com www.studentyogi.com

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