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

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

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Chemical Engineering Plant Economics
In a manufacturing industry, break even point occurs, when the

Total annual product cost equals the total annual sales
Annual sales equals the fixed cost
Total annual rate of production equals the assigned value
Annual profit equals the expected value

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