Chemical Engineering > GATE 2016 > Economic Analysis
Two design options for a distillation system are being compared based on the total annual cost. Information available is as follows:
The annual fixed charge amounts to 12% of the installed cost. Based on the above information, what is the total annual cost (Rs in lakhs /year) of the better option?
| Option P | Option Q | |
|---|---|---|
| Installed cost of the system (Rs in lakhs) | 150 | 120 |
| Cost of cooling water for condenser (Rs in lakhs/year) | 6 | 8 |
| Cost of steam for reboiler (Rs in lakhs/year) | 16 | 20 |
Correct : b
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