# Plant Design and Economics GATE-2015

**Q 1.** The cost of two independent process variables *f _{1} *and

*f*affects the total cost C

_{2}_{T}(in lakhs of rupees) of the process as per the following function:

The lowest total cost C_{T}, 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 _______________.