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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
Functional depreciation of an equipment is the measure of decrease in its value due to its

Obsolescence
Wear and tear
Ageing
Breakdown or accident

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Chemical Engineering Plant Economics
Fixed charges for a chemical plant does not include the

Rent of land and buildings
Repair and maintenance charges
Interest on borrowed money
Property tax, insurance and depreciation

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Chemical Engineering Plant Economics
The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is

150%
10%
15%
1.5%

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Chemical Engineering Plant Economics
Which of the following methods of depreciation calculations results in book values greater than those obtained with straight line method?

Declining balance method
Sinking fund method
Sum of the years digit method
Multiple straight line method

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Chemical Engineering Plant Economics
Which of the following is not a component of the working capital for a chemical process plant?

In-process inventory
Minimum cash reserve
Storage facilities
Product inventory

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Chemical Engineering Plant Economics
The amount of compounded interest during 'n' interest periods is

P(1 - i)n
P[(1+i)n-1)]
P(1 + i)n
P(1 + in)

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