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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
For a typical project, the cumulative cash flow is zero at the

End of the project life
Start up
End of the design stage
Break even point

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Chemical Engineering Plant Economics
An investment of Rs. 100 lakhs is to be made for construction of a plant, which will take two years to start production. The annual profit from the operation of the plant is Rs. 20 lakhs. What will be the pay back time?

12 years
10 years
7 years
5 years

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Chemical Engineering Plant Economics
'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 rath year by the sum-of years digit method will be

M/n x (P - S)
(P - S)/n
1 - (P/S)1/m
2(n - m + 1)/n(n + 1) x (P - S)

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Chemical Engineering Plant Economics
Break-even point is the point of intersection of

Fixed cost and total cost
None of these
Fixed cost and sales revenue
Total cost and sales revenue

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Chemical Engineering Plant Economics
The economic life of a large chemical process plant as compared to a small chemical plant is

Almost equal
Only slightly more
Much more
Slightly less

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Chemical Engineering Plant Economics
Cost incurred towards __________ in a chemical plant is a component of the utilities cost.

Medical services
Water supply
Property protection
Running a control laboratory

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