Fixed capital investment of a chemical plant is the total amount of money needed to supply the necessary plant and manufacturing facilities plus the working capital for operation of the facilities. Which of the following components of fixed capital investment requires minimum percentage of it ?
Correct answer: D. Equipment insulation cost
- A. Electrical installation cost
- B. Equipment installation cost
- C. Cost for piping
- D. Equipment insulation cost
Explanation
Equipment insulation is usually a small percentage of fixed capital investment, commonly only about 1 to 3%. Piping and equipment installation require much larger expenditures, while electrical installation is also generally higher than insulation.
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