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Thapar University, Patiala

Department of Chemical Engineering
B. E. (Final Year): Semester-II Course Code: UCH-801
(CHE) Course Name: Process Engineering and
Plant design
March 17, 2016 Thursday, 10.30 — 12.30 Hrs
Time: 2 Hours, M. Marks: 60 Name of Faculty: Dr. Sanjeev Ahuja

1. Draw a P & I diagram for a binary distillation column.

2. Make a study estimate of the fixed-capital investment for a process plant if the purchased equipment is
10,00,000. Use the following ranges of process-plant component cost. These are percentages of FCI for a plant
holding both solids and fluids with a high degree of automatic control.
Direct costs: Purchased equipment 15-40, Purchased equipment installation 6-14, Instrumentation and controls
(installed) 2-8, Piping (installed) 3-20, Electrical (installed) 2-10, Buildings (including services) 3-18, Yard
improvements 2-5, Service facilities (installed) 8-20, Land 1-2. Indirect costs: Engineering and supervision 4-
21, Construction expense 4-16, Contractor's fee 2-6, Contingency 5-15.

3. Prepare a study estimate of the Fixed-Capital Investment for a solid processing plant. Use the %ages of
delivered equipment cost described below. The delivered equipment cost is 10,00,000. Make the following
modifications: take instrumentation as 10% of FCI, and buildings as 15% of purchased equipment. (5)
Purchased equipment-delivered (including fabricated equipment and process machinery) 100, Purchased-
equipment installation 45, Instrumentation and controls (installed) 9, Piping (installed) 16, Electrical (installed)
10, Buildings (including services) 25, Yard improvements 13, Service facilities (installed) 40, Land (if purchase
is required) 6, Engineering and supervision 33, Construction expenses 39, Contractor's fee 17, Contingency 35.

4. What will be the total amount available 10 years from now if 10,000 are deposited at the present time with
monthly interest rate of 2 % and the interest is compounded monthly? Solve the same problem when interest is
compounded continuously and compare the results. (5)
5. A continuous cash flow of 10,000 per year is received continuously for 5 years.. Interest is 10% per year
compounded annually. Find the following: (i) future worth (ii) present worth (iii) (present worth) cash flow a
year at a time and (iv) (future worth) cash flow a year at a time. (10)

6. For a constant monthly end-of-the-month loan re-payments: A ldan of 10,000 (P0) at a nominal interest rate
of 10%, per year is made for a repayment period of 1 year. Determine the constant payment per month L, the
interest and principal paid each month, fraind the remaining unpaid principal at the end of each month. (10)

L= p0
El + ci )j —

+ 9 c..)J —I
7. Calculate the %age factor fort a class life of 5 years as presented in table of MACRS. The half-year
convention of the first and last year applies. Use an initial property value of 75,000. (10)

8. Find the profitability of a project: FCI 90,000, TCI 1,00,000, Salvage value at the end of 5 year service life
20,000, Annual earnings (income minus all costs except depreciation) 30,000. The minimum acceptable rate of
return is 20%. Use straight-line depreciation method. Calculate using: (10)
(a) Return on investment (b) Pay Back Period (c) Net Return.