Chemical Engineering Plant Economics (MCQs)

Pick out the wrong statement.

  • A. The annual depreciation rate for machinery and equipments in a chemical process plant is about 10% of the fixed capital investment
  • B. Annual depreciation rate of buildings in a chemical plant is about 3% of its initial cost
  • C. Insurance rates on annual basis in a chemical plant may be about 1% of the fixed capital investment
  • D. In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR)
Answer: Option D.

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