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GATE SOLVED PAPER

Chemical Engineering
Plant Design and Economics

Copyright © By NODIA & COMPANY

Information contained in this book has been obtained by authors, from sources believes to be reliable. However,
neither Nodia nor its authors guarantee the accuracy or completeness of any information herein, and Nodia nor its
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 GATE SOLVED PAPER - CH
Plant Design and Economics

Year 2011 One Mark

Q. 1 Two systems are available for compressing 6 m3 /h of ambient air to 10 bar. The
first one uses a single stage compressor ^K1h and the second one uses a multistage
compressor with inter-stage cooling ^K2h. Which one of the following statements
is incorrect?
(A) K2 will have knockout pots in between the stages
(B) Discharge temperature of K1 will be higher than that of K2
(C) K2 will consume more power than K1

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(D) Cost of K2 will be more than that of K1

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Q. 2 In a thin-walled cylindrical vessel of thickness t with inside radius r , the internal

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gauge pressure is p. The hoop stress and the longitudinal stress in the shell are

.
σ h and σ l , respectively. Which one of the following statements is true?

a
pr pr pr pr

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(A) σ h = , σl = (B) σh = , σl =
t 4t 4t t
(C) σ h =
pr
2t
, σl =
pr
t
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(D)
d σh =
pr
t
, σl =
pr
2t

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Year 2011 Two Marks

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Q. 3 Fuel cell stacks are made of nine Membrane Electrode Assemblies (MEAs)
interleaved between ten Bipolar Plates (BPs) as illustrated below. The width of a

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membrane electrode assembly and a bipolar plate are normally distributed with

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µ MEA = 0.15 , σ MEA = 0.01 and µ BP = 5 , σ BP = 0.1, respectively. The widths of the
different layers are independent of each other.

Which one of the following represents the correct values of ^µ stack, σ stackh for the
overall fuel cell stack width?
(A) (51.35, 0.32)
(B) (51.35, 1.09)
(C) (5.15, 0.10)
(D) (5.15, 0.11)
GATE SOLVED PAPER - CH Plant Design and Economics

Q. 4 A process plant has a life of 7 yr and its salvage value is 30%. For what minimum
fixed-percentage factor will be depreciation amount for the second year, calculated
by declining balance method be equal to that calculated by the straight line
depreciation method?
(A) 0.1 (B) 0.113
(C) 0.527 (D) 0.887

Q. 5 A continuous fractionator system is being designed. The following cost figures are
estimated for a reflux ratio of 1.4.
Fixed cost including all accessories (Rs) for
column condenser reboiler
6 # 106 2 # 106 4 # 106
Operating cost (Rs/yr) for
condenser cooling water reboiler heating steam

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6
8 # 10 1 # 106

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The annualized fixed charge is 15% of the fixed cost. The total annualized cost
(in Rs) is
(A) 10.8 # 106 (B)
. c13.35 # 106

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(C) 15.9 # 106 (D) 3.15 # 106

Year 2010
o d One Mark

Q. 6

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The term knuckle radius is associated with

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(A) flat heads (B) torispherical heads
(C) hemispherical heads (D) conical heads

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Year 2010 Two Marks

Q. 7
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A reactor needs to be lined with a corrosion resistant lining. One type of lining
costs Rs 5 lakh, and is expected to last for 2 year. Another type of lining lasts for
3 year. If both choices have to be equally economical with the effective interest
rate being 18%, compounded annually, the price one should pay for the second
type of lining is
(A) Rs 6.1 lakh (B) Rs 6.5 lakh
(C) Rs 6.9 lakh (D) Rs 7.6 lakh

Common Data For Questions 8 and 9 :

A plant produces phenol. The variable cost in Rs/ton of phenol is related to the plant
capacity P (in ton/day) as 45000 + 5P . The fixed charges are Rs 100000 per day. The
selling price of phenol is Rs 50000 per ton.
Q. 8 The optimal plant capacity (in ton/day) for minimum cost per ton of phenol, is
(A) 101 (B) 141
(C) 283 (D) 422

Q. 9 The break even capacity in ton/day, is

(A) 50 (B) 40
(C) 30 (D) 20
GATE SOLVED PAPER - CH Plant Design and Economics

Year 2009 One Mark

Q. 10 The total fixed cost of a chemical plant is Rs 10.0 lakh; the internal rate of return
is 15% and the annual operating cost is Rs 2.0 lakh. The annualized cost of the
plant, in lakh of Rs, is
(A) 1.8 (B) 2.6
(C) 3.5 (D) 4.3

Year 2009 Two Marks

Q. 11 A column costs Rs 5 lakh and has a useful life of 10 year. Using the double
declining balance depreciation method, the book value of the unit at the end of
5 year in lakh of Rs, is
(A) 1.21 (B) 1.31
(C) 1.64 (D) 2.05

Q. 12 Match the equipment in Group I to the intervals in Group II.

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Group I Group II
P. Centrifugal pump
Q. Distillation column
I.
II. .
Baffle

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Impeller
R. Heat exchanger
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III. Tray

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IV. Volute

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(A) P-II, Q-I, R-IV (B) P-II, Q-IV, R-III

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(C) P-I, Q-III, R-IV (D) P-IV, Q-III, R-I

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Year 2008 One Mark

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Q. 13 For the case of single lump-sum capital expenditure of Rs 10 crore which generates
a constant annual cash flow of Rs 2 crore in each subsequent year, the payback

(A) 10 w
period (in year), if the scrap value of the capital outlay is zero, is
(B) 20

Q. 14
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(C) 1 (D) 5

The relation between capital rate of return ratio (CRR), net present value (NPV)
and maximum cumulative expenditure (MCE) is
(A) CRR = NPV (B) CRR = MCE
MCE NPV
MCE
^NPV + MCEh
(C) CRR = NPV # MCE (D) CRR =

Q. 15 To determine the performance of a compressor, a standardized test is performed.

In the testing process, when the compressor is under operation, shut-off term
signifies
(A) maximum flow
(B) zero flow
(C) steady flow
(D) intermittent flow
GATE SOLVED PAPER - CH Plant Design and Economics

Year 2008 Two Marks

Q. 16 A reactor has been installed at a cost of Rs. 50000 and is expected to have a
working life of 10 yr with a scrap value of Rs. 10000. The capitalized cost (in Rs.)
of the reactor based on an annual compound interest rate if 5% is
(A) 113600 (B) 42000
(C) 52500 (D) 10500

Q. 17 A cylindrical vessel with hemispherical ends is filled with water as shown in

the figure. The head space is pressurized to a gauge pressure of 40 kN/m2 . The
vertical force F (in kN) tending to lift the top dome and the absolute pressure
p (in kN/m2 ) at the bottom of the vessel are (g = 9.8 m/s2 , density of water
= 1000 kg/m3 )

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a .
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(A) F = 83.6 , p = 64.5 (B) F = 83.6 , p = 165.8

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(C) F = 125.7 , p = 64.5 (D)
F = 125.7 . p = 165.8

Q. 18
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Year 2007 One Mark

Select the most appropriate pump from Group II to handle each fluid flow given
in Group I.
Group I Group II
P. Highly viscous fluid flow I. Piston pump
Q. Fluid containing large amount II. Gear pump
of abrasive solids
III. Plunger pump
IV. Centrifugal pump
(A) P-II, Q-I (B) P-II, Q-IV
(C) P-III, Q-IV (D) P-IV, Q-III

Q. 19 A cylindrical storage tank can have a self-supported conical roof,

(A) if its diameter is less than 20 m
(B) if its diameter is more than 50 m
(C) if the thickness of the roof is more than that of the cylindrical shell
(D) whatever is the diameter
GATE SOLVED PAPER - CH Plant Design and Economics

Year 2007 Two Marks

Q. 20 A pump has an installed cost of Rs 40000 and a 10 year estimated life. The
salvage value of the pump is zero at the end of 10 year. The pump value (in Rs),
after depreciation by the double declining balance method, at the end of 6 year is
(A) 4295 (B) 10486
(C) 21257 (D) 37600

Year 2006 Two Marks

Q. 21 In a desalination plant, an evaporator of area 200 m2 was purchased in 1996 at a

cost of $300000. In 2002, another evaporator of area 50 m2 was added. What was
the cost of the second evaporator (in $)? Assume that the cost of evaporators
scales as (capacity)0.54. The Marshall and Swift indices was 1048.5 in 1996 and
1116.9 in 2002.
(A) 130500 (B) 139100
(C) 141900 (D) 151200

Q. 22

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The mixing of rubber latex solution was studied in an unbaffled mixer in the

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laboratory. The mixer was equipped with a six blade turbine impeller. A tyre

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company scales this process up using a baffled tank. The baffled tank has 3 times

.
the diameter of the lab scale mixer. It uses the same type of impeller operated

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at the same speed. The relevant shape factors are also the same. Assuming that

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laminar conditions prevail in both cases, the power requirement in the industrial
scale mixer

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(A) is 3 times that of the lab scale mixer

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(B) is 9 times that of the lab scale mixer

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(C) is 27 times that of the lab scale mixer

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(D) cannot be estimated reliably due to the presence of battles

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Q. 23 Due to a 20% drop in the product selling price, the pay-back period of a new
plant increased to 1.5 times that estimated initially. The production cost and the

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production rate remaining unchanged. If the production cost is C P and the new
selling price is C S , then C p /C S is
(A) 0.2 (B) 0.4
(C) 0.5 (D) 0.6

Q. 24 Obtain the optimal diameter of a cylindrical storage vessel of volume V . The

curved shell costs C s (in Rs/m2) and the flat top and bottom plates cost C P (in
Rs/m2),
(A) D = Cs b 4V l (B) D = c 8VCS m
1/3 1/3

Cp π π CP

(C) D = cVCS m (D)

D = c 4VCs m
1/3 1/3

CP πC P

Q. 25 A sale contract signed by a chemical manufacturer is expected to generate a net

cash flow of Rs 250000 per year at the end of each year for a period of 3 year.
The applicable discount rate (interest rate) is 10%. The net present worth of the
total cash flow, is Rs.
(A) 750000 (B) 683750
(C) 621500 (D) 332750
GATE SOLVED PAPER - CH Plant Design and Economics

Year 2005 One Mark

Q. 26 For a solid processing plant, the delivered equipment cost is Rs 10 lakh. Using
Lang multiplication method, the total capital investment, in lakh of Rs, is
(A) 46 (B) 57
(C) 100 (D) 200

Q. 27 The cost of drum dryer is Rs 10 lakh. the cost of drum dryer with double the
surface area in lakh of Rs, is
(A) 2 # 10 (B) 30.6 # 10

(C) 50.6 # 10 (D)

20.6 # 10

Q. 28 The cost of distillation column in the year 2000 is Rs x , what is the cost of the
column in Rs in the year 2010, given the cost indices for the years 2000 and 2010

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are 480 and 520 respectively?
(A) b 520 l x (B)
.
b 520
2
480 l x

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480

b
(C) b 520 l x (D)
480 l
520 0.6 x
. c
a
480

d i
Year 2005

n o Two Marks

Q. 29
.
The original value of an equipment is Rs 10000. The salvage value is Rs 500 at the

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end of its useful life period of 5 year. What is the asset value in Rs after 2 year
by textbook declining balance method?
(A) 3025
w (B) 4010

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(C) 5020 (D) 6050

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Q. 30 The depreciable fixed cost is Rs 100 lakh. The average profit per year is
Rs 15 lakh. The average depreciation cost per year is Rs 10 lakh. What is the
payout period in years, if there is no interest charge?
(A) 8 (B) 4
(C) 10 (D) 20

Year 2004 Two Marks

Common Data For Questions 31 and 32 :

Fixed capital investment for a chemical plant is Rs 40 million with an estimated useful
life of 6 year and a salvage value of Rs 4 million. The rate of interest is 15%, tax is 25% of
the annual taxable income. In the first year of operation, the income from sales is Rs 20
million and manufacturing expenses are Rs 5 million. The plant depreciates on a straight
line basis.
Q. 31 The rate of return on investment is given by
(A) 50% (B) 37.5%
(C) 32% (D) 20%
GATE SOLVED PAPER - CH Plant Design and Economics

Q. 32 The net present value (NPV) in million Rs at the start and at the end of the first
year of operation is respectively given by
(A) zero and – 28.9 (B) – 40 end – 28.9
(C) – 40 and 12.75 (D) zero and 12.75

Year 2003 One Mark

Q. 33 Direct cost component of the fixed capital consists of

(A) contingency (B) onsite and offsite costs
(C) labour costs (D) raw material costs

Q. 34 A series of equal payments (e.g., deposit or cost) made at equal intervals of time
is known as
(A) perpetuity (B) capital charge factor
(C) annuity (D) future worth

Q. 35 The variables required to be known in correlation used for estimating the horse

(A) inlet pressure

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power of a centrifugal gas compressor and hence its cost are
(B) compressor rpm
(C) dilivery pressure

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(D) volumetric flow rate at inlet

a .
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Year 2003 Two Marks

Q. 36
d
Two pumps under consideration for installation at a plant have the following

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capital investments and salvage values.

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Pump A: C 1 = Rs 40000 and C sal = Rs 3900
Pump B: C 1 = Rs 50000 and C sal = Rs 20000

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Using capitalized cost, determine what should be the common life of the pumps

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for both to be competitive (economically equivalent) has been given like this only.

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Interest rate is 10% per annum. Maintenance and Operational costs are negligible.
(A) 3 year (B) 5 year

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(C) 6 year (D) 8 year

Common Data For Questions 37 and 38 :

A process has fixed capital investment of Rs 150 lakh, working capital Rs 30 lakh and
salvage value zero. Annual revenues from sales are Rs 250 lakh, manufacturing costs
Rs 145 lakh and other expenses 10% of the revenue. Assume project life span of 11
year, tax life of 5 year and interest rate to be 10%. Tax rate is 40% and straight line
depreciation, i.e., 20% per year, is applicable.
Q. 37 Discounted value (to present time) of the profit before tax (for the total plant life
period) in Rs is
(A) 228 lakh (B) 400 lakh
(C) 520 lakh (D) 660 lakh

Q. 38 Discounted value of the depreciation benefit over the tax life in Rs is

(A) 12 lakh (B) 24 lakh
(C) 46 lakh (D) 60 lakh
GATE SOLVED PAPER - CH Plant Design and Economics

Year 2002 One Mark

Q. 39 The total investment in a project is Rs 10 lakh and the annual profit is Rs 1.5
lakh. It the project life is 10 yr, then the simple rate of return on investment is
(A) 15% (B) 10%
(C) 1.5% (D) 150%

Year 2002 Two Marks

Q. 40 If an amount R is paid at the end of every year for n years, then the net present
value of the annuity at an interest rate of i is
^1 + i hn − 1 ^1 + i hn − 1
(A) R ; E (B) R> H
i i ^1 + i hn
(C) R ^1 + i hn (D) R
^1 + i hn
Q. 41

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A company has a depreciable investment of Rs 36400 which is depreciated in

o
equal instalments in 2 year. Assume that the tax rate is 50% and interest rate is

c
10%. The net present value of tax that the company would have saved, if it had

.
depreciated 2/3rd of the investment in the first year and the rest in the second

a
i
year, is

d
(A) zero (B) 250

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(C) 375 (D) 500

Q. 42

. n
A cylindrical pressure vessel of volume 6π m3 has to be designed to withstand a

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maximum internal pressure of 10 atm. The allowable design stress of the material
is 125 N/mm2 and corrosion allowance is 2 mm . The thickness of the vessel for a

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length/diameter ratio of 3 will be closed to

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(A) 5 mm (B) 6 mm
(C) 8 mm (D) 10 mm

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Year 2001 One Mark

Q. 43 An investment of Rs 100 lakh is to be made for construction of a plant which will

take 2 yr to start production. The annual profit from operation of the plant is Rs
20 lakh. What will be the payback time?
(A) 5 yr (B) 7 yr
(C) 12 yr (D) 10 yr

Q. 44 A perforated plate has holes of diameter dh arranged in a pitch ph . Each hole has
tube of diameter dt passing through it. The ligament efficiency is given by
p h - b d h dt l
ph - dh 2
(A) (B)
ph ph
p - dt ph - dh
(C) h (D)
ph dh
Q. 45 The ends of a cylindrical vessel can be closed by a head, which can be one of
the four shapes. For the same thickness, choose the one which can withstand the
highest pressure.
(A) Flat plate (B) Hemispherical
(C) Torispherical (D) Ellipsoidal
GATE SOLVED PAPER - CH Plant Design and Economics

Year 2001 Two Marks

Q. 46 An investment of Rs 1000 is carrying on interest of 10% compounded quarterly.

The value of the investment at the end of 5 year will be
(A) 1000 b1 + 0.1 l (B) 1000 ^1 + 0.10h20
20

4
(C) 1000 b1 + 0.1 l (D)
1000 b1 + 0.1 l
5 5

4 2

Q. 47 P is the investment made on an equipment, S is its salvage value and n is the

life of the equipment in years. The depreciation for the m th year by the sum-of-
years-digits method will be
1 -bP l
m
(A) P - S (B)
n S
2 ^n − m + 1h
(C) m ^P - S h (D) ^P − S h
n n ^n + 1h

Q. 48 In a cylindrical vessel subjected to internal pressure, the longitudinal stress σ L ,

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and the circumferential stress σ H , are related by
(A) s H = 2s L (B)

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sH = sL

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(C) s H = s L (D) No relation exists

c
2

a .
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Year 2000 One Mark

d
Q. 49 For a typical project, the cumulative cash flow is zero at the

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(A) end of the project life (B) break-even point

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(C) start-up (D) end of the design stage

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GATE SOLVED PAPER - CH Plant Design and Economics

ANSWER KEY
Plant Design and Economics
1 2 3 4 5 6 7 8 9 10
(B) (D) (B) (C) (A) (B) (C) (B) (D) (C)
11 12 13 14 15 16 17 18 19 20
(C) (D) (D) (A) (B) (A) (D) (B) (B) (B)
21 22 23 24 25 26 27 28 29 30
(D) (C) (B) (B) (C) (A) (D) (C) (A) (B)
31 32 33 34 35 36 37 38 39 40
(C) (D) (B) (C) (A) (D) (C) (B) (C) (B)
41 42 43 44 45 46 47 48 49

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(B) (D) (B) (C) (D) (B) (D) (A) (B)

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