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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.

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

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Chemical Engineering Plant Economics
Out of the following, the depreciation calculated by the __________ method is the maximum.

Sinking fund
Diminishing balance
Sum of the years digit
Straight line

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

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

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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?

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

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

Onsite and offsite costs
Contingencies
Labour costs
Raw material costs

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Chemical Engineering Plant Economics
Operating profit of a chemical plant is equal to

Profit after tax
Profit after tax plus depreciation
Profit before interest and tax i.e., net profit + interest + tax
Net profit + tax

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