Q 1. The cost of two independent process variables f1 and f2 affects the total cost CT (in lakhs of rupees) of the process as per the following function:
C_T=100\;f_1+\frac{1000}{f_1f_2}+20f_2^2+50The lowest total cost CT, in lakhs of rupees (up to one decimal place) is ____________.
Q 2. A proposed chemical plant is estimated to have a fixed capital (FC) of Rs. 24 crores. Assuming other costs to be small, the total investment may be taken to be same as FC. After commissioning (at t = 0 years), the annual profit before tax is Rs. 10 crores/ year (at the end of each year) and the expected life of the plant is 10 years. The tax rate is 40% per year and a linear depreciation is allowed at 10% per year. The salvage value is zero. If the annual interest rate is 12%, the NPV (net present value or worth) of the project in crores of rupees (up to one decimal place) is _______________.