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Chemical Engineering Plant Economics

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

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

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Chemical Engineering Plant Economics
With increase in the discounted cash flow rate of return, the ratio of the total present value to the initial investment of a given project

Remains constant
Decreases
Increases
Increases linearly

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Chemical Engineering Plant Economics
Effluent treatment cost in a chemical plant is categorised as the __________ cost.

Overhead
Utilities
Capital
Fixed

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

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

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Chemical Engineering Plant Economics
The ratio of working capital to total capital investment for most chemical plants (except for non-seasonal based products) is in the range of __________ percent.

0.1 to 1
1 to 2
50 to 60
10 to 20

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Chemical Engineering Plant Economics
Which of the following does not come under the sales expenses for a product of a chemical plant?

Advertising
Customer service
Warehousing
Legal fees

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