CHEMICAL ENGINEERING PLANT ECONOMICS QUIZ

Does figure in the calculation of income tax liability on cash flows from an investment

Is the unavoidable loss in the value of the plant, equipment and materials with lapse in time

All of these

Costs (on annual basis) are constant when the straight line method is used for its determination

Capital charge factor

Annuity

Future worth

Perpetuity

Semi-annually

Annually

In no case, they are equal

Quarterly

Profit after tax

Profit after tax plus depreciation

Net profit + tax

Profit before interest and tax i.e., net profit + interest + tax

None of these

Declining balance

Straight line

Sum of the years digit

Rent of land and buildings

Repair and maintenance charges

Interest on borrowed money

Property tax, insurance and depreciation

50 to 60

0.1 to 1

10 to 20

1 to 2

(P - S)/n

1 - (P/S)1/m

M/n x (P - S)

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

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

P(1 - i)n

P(1 + in)

P(1 + i)n

Economics

Opportunities

Product distribution

Competition from other manufactures