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Chemical Engineering Plant Economics

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

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

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Chemical Engineering Plant Economics
Construction expenses are roughly __________ percent of the total direct cost of the plant.

10
2
50
30

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

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Chemical Engineering Plant Economics
The 'total capital investment' for a chemical process plant comprises of the fixed capital investment and the

Overhead cost
Direct production cost
Indirect production cost
Working capital

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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
40096
53196
43196

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Chemical Engineering Plant Economics
Which of the following is not a component of working capital?

Transportation facilities
Raw materials is stock
Finished products in stock
Semi-finished products in the process

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