Distinguish between Fixed capital and working capital and give two examples of each.

Introduction to Chemical Engineering Thermodynamics
8th Edition
ISBN:9781259696527
Author:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Publisher:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Chapter1: Introduction
Section: Chapter Questions
Problem 1.1P
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3.1 Distinguish between Fixed capital and working capital and give two examples of each.
3.2 What is the difference between the nominal annual interest rate and the effective annual
interest rate? When are these two rates equal?
3.3. The current value of the Chemical Engineering Plant Cost Index (CEPCI) is 485. If at the
same time next year the value has risen to 525, what will be the average inflation rate for the
year?
3.4 Two reactors were bought for the same service, one (A) in 2008 and the other (B) in 2013.


What is the cost of a 40 m° reactor today (M&S Index = 750)?

Reactor
A
B
Volume (m³)
33
53
Time (year)
2008
2013
Cost (R)
68 000
120 000
Marshall and Swift Index
500
620
Transcribed Image Text:Reactor A B Volume (m³) 33 53 Time (year) 2008 2013 Cost (R) 68 000 120 000 Marshall and Swift Index 500 620
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