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Chemical Engineering Plant Economics

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

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

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Chemical Engineering Plant Economics
'Six-tenth factor' rule is used for estimating the

Cost of piping
Utilities cost
Equipment cost by scaling
Equipment installation cost

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Chemical Engineering Plant Economics
Fixed charges for a chemical plant does not include the

Property tax, insurance and depreciation
Rent of land and buildings
Interest on borrowed money
Repair and maintenance charges

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Chemical Engineering Plant Economics
Cost incurred towards __________ in a chemical plant is a component of the utilities cost.

Property protection
Water supply
Running a control laboratory
Medical services

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

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

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

Contingencies
Labour costs
Raw material costs
Onsite and offsite costs

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