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Chemical Engineering · Q44

Chemical Engineering Plant Economics

Engineering and GATE · Chemical Engineering · question 44

Q44

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

Answer: Option D

Solution

Answer: Option D
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