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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be __________ percent.

20
< 20
10
>20

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Chemical Engineering Plant Economics
Purchased cost of equipments for a chemical process plant ranges from __________ percent of the fixed capital investment.

45 to 60
10 to 20
20 to 40
65 to 75

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

Total product cost
Total income
Fixed cost
Gross earning

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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

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

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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?

Product inventory
Minimum cash reserve
In-process inventory
Storage facilities

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Chemical Engineering Plant Economics
The payback method for the measurement of return on investment

Does not measure the discounted rate of return
Takes into account the cash inflows after the recovery of investments
Underemphasises liquidity
Gives a correct picture of profitability

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