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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
The ratio of gross annual sales to the fixed capital investment is termed as the __________ ratio.

Turnover
Cash reserve
Capital
Investment

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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

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

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Chemical Engineering Plant Economics
The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is

150%
10%
15%
1.5%

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Chemical Engineering Plant Economics
'Lang factor' is defined as the ratio of the capital investment to the delivered cost of major equipments. The value of 'Lang factor' for fixed capital investment, for a solid-fluid processing chemical plant ranges from

6.2 to 6.4
2.5 to 2.7
1.2 to 1.4
4.2 to 4.4

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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
Underemphasises liquidity
Does not measure the discounted rate of return

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Chemical Engineering Plant Economics
Break-even point is the point of intersection of

None of these
Fixed cost and sales revenue
Fixed cost and total cost
Total cost and sales revenue

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