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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
If 'S' is the amount available after 'n' interest periods for an initial principal 'P' with the discrete compound interest rate 'i', the present worth is given by

S/(1 + i)n
S/(1 + n)i
S/(1 + in)
(1 + i)n/S

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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%
1.5%
15%

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Chemical Engineering Plant Economics
Nominal and effective interest rates are equal, when the interest is compounded

Quarterly
Semi-annually
In no case, they are equal
Annually

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

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

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Chemical Engineering Plant Economics
Construction expenses are roughly __________ percent of the total direct cost of the plant.

2
10
30
50

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Chemical Engineering Plant Economics
Effective and nominal interest rates are equal, when the interest is compounded

Fortnightly
Annually
Monthly
half-yearly

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