Chemegate

GATE 2024 Chemical Engineering, Q35 · Plant Economics

The correct answer is 57.5 to 57.7.

Question

The capital cost of a distillation column is Rs. 90 lakhs. The cost is to be fully depreciated (salvage value is zero) using the double-declining balance method over 10 years. At the end of two years of continuous operation, the book-value of the column, in lakhs of rupees, rounded off to 1 decimal place, is _______

Official answer: 57.5 to 57.7

Why

GATE 2024 official key: 57.5 to 57.7. DDB rate = 2/n = 2/10 = 20%/yr. BV1=90×0.8=BV₁ = 90 \times 0.8 = 72; BV2=72×0.8=57.6BV₂ = 72 \times 0.8 = 57.6 lakhs.

Explanation cross-checked for consistency. Final answer matches the official IIT answer key.