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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
Generally, income taxes are based on the

Total income
Gross earning
Fixed cost
Total product cost

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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
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
5 years
7 years
10 years

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

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

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Chemical Engineering Plant Economics
The inventory of raw materials included in the working capital is usually about __________ months supply of raw materials valued at delivery prices.

Six
Three
One
Twelve

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Chemical Engineering Plant Economics
In financial accounting of a chemical plant, which of the following relationship is invalid?

Assets = equities
Total income = costs + profits
Assets = capital
Assets = liabilities + net worth

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