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Chemical Engineering Plant Economics

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

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

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Chemical Engineering Plant Economics
If an amount R is paid at the end of every year for 'n' years, then the net present value of the annuity at an interest rate of i is

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

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Chemical Engineering Plant Economics
An investment of Rs. 1000 is carrying an interest of 10% compounded quarterly. The value of the investment at the end of five years will be

1000 (1 + 0.1/2)5
1000 (1 + 0.1/4)20
1000 (1 + 0.1/4)5
1000 (1 + 0.1)20

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Chemical Engineering Plant Economics
Annual depreciation cost are not constant when, the __________ method of depreciation calculation is used.

Straight line
Present worth
Sinking fund
Declining balance

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

Utilities
Fixed
Overhead
Capital

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