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CHEMICAL ENGINEERING PLANT ECONOMICS

Chemical Engineering Plant Economics
If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be __________ percent.

10
20
< 20
>20

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Chemical Engineering Plant Economics
The inventory of raw materials included in the working capital is usually about __________ months supply of raw materials valued at delivery prices.

Three
One
Twelve
Six

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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?

5 years
12 years
7 years
10 years

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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%
1.5%
150%

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Chemical Engineering Plant Economics
For a typical project, the cumulative cash flow is zero at the

End of the project life
End of the design stage
Start up
Break even point

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