CHEMICAL ENGINEERING PLANT ECONOMICS QUIZ

Three

Six

One

Twelve

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

All of these

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

Plant overheads

Direct products cost

Fixed charges

Administrative expenses

Sum-of-the-years-digits methods of depreciation calculation accounts for the interest on the investment

Unamortised cost is the difference between the original cost of a property and all the depreciation charges made to dat

Difference between income and expense is termed as gross revenue

Scrap value is the net amount of money obtainable from the sale of used property over and above any charges involved in its removal & sale

1000 (1 + 0.1/2)5

1000 (1 + 0.1/4)5

1000 (1 + 0.1)20

1000 (1 + 0.1/4)20

Warehousing

Legal fees

Customer service

Advertising

R/(1 + i)n

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

R(1 + i)n

R[((1 + i)n - 1)/i]

And economic life of a project are the same

Is the length of time over which the earnings on a project equals the investment

All of these

Is affected by the variation in earnings after the recovery of the investment

95

30

75

50

Total annual rate of production equals the assigned value

Annual sales equals the fixed cost

Total annual product cost equals the total annual sales

Annual profit equals the expected value