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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
Which of the following is not a current asset of a chemical company?

Inventories
Chemical equipments
Marketable securities
None of these

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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

15%
10%
150%
1.5%

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

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

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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?

7 years
12 years
5 years
10 years

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Chemical Engineering Plant Economics
Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant?

Payout period
Discounted cash flow based on full life performance
Rate of return on investment
Cash reserve

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

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

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