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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?

Chemical equipments
Inventories
None of these
Marketable securities

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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
Gives a correct picture of profitability
Takes into account the cash inflows after the recovery of investments
Underemphasises liquidity

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Chemical Engineering Plant Economics
Annual depreciation costs are constant, when the __________ method of depreciation calculation is used.

Declining balance
None of these
Straight line
Sum of the years digit

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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.

60196
43196
53196
40096

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Chemical Engineering Plant Economics
Expenditure on research and development (R & D) is categorised as the __________ , while making an estimate of the total product cost for a chemical plant.

Fixed expenses
Direct production cost
Overhead cost
General expenses

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

Repairs and maintenance 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

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