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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
Which of the following is not a component of the fixed capital for a chemical plant facility?

Emergency facilities
Process equipment
Raw materials inventory
Utilities plants

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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?

5 years
10 years
12 years
7 years

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Chemical Engineering Plant Economics
For a typical project, the cumulative cash flow is zero at the

End of the project life
Start up
Break even point
End of the design stage

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Chemical Engineering Plant Economics
Following the six-tenth factor rule, if a log-log plot of capacity of the equipment vs. cost of the equipment is made, then a straight line is obtained, whose slope is equal to

0.6
0.1
0.2
0.8

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Chemical Engineering Plant Economics
Depreciation is __________ in profit with time.

No change
None of these
Increase
Decrease

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

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

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