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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?

Customer service
Advertising
Legal fees
Warehousing

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Chemical Engineering Plant Economics
Direct costs component of the fixed capital consists of

Contingencies
Raw material costs
Onsite and offsite costs
Labour costs

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Chemical Engineering Plant Economics
Which of the following is not a component of depreciation cost?

Loss due to obsolescence of the equipment
Loss due to decrease in the demand of product
Loss due to accident/breakdown in the machinery
Repairs and maintenance cost

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Chemical Engineering Plant Economics
A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual interest rate is 10%. The original cost of the reactor was Rs. 80000. The book value of the reactor after 5 years using sinking fund depreciation method will be Rs.

43196
53196
60196
40096

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Chemical Engineering Plant Economics
An investment of Rs. 100 lakhs is to be made for construction of a plant, which will take two years to start production. The annual profit from the operation of the plant is Rs. 20 lakhs. What will be the pay back time?

10 years
7 years
5 years
12 years

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Chemical Engineering Plant Economics
Construction expenses are roughly __________ percent of the total direct cost of the plant.

30
2
50
10

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