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Chemical Engineering Plant Economics

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

Onsite and offsite costs
Labour costs
Raw material costs
Contingencies

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Chemical Engineering Plant Economics
A machine has an initial value of Rs. 5000, service life of 5 years and final salvage value of Rs. 1000. The annual depreciation cost by straight line method is Rs.

1000
600
800
300

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Chemical Engineering Plant Economics
A shareholder has __________ say in the affairs of company management compared to a debenture holder.

More
No
Same
Less

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Chemical Engineering Plant Economics
'Utilities' in a chemical process plant includes compressed air, steam, water, electrical power, oxygen, acetylene, fuel gases etc. Utility costs for ordinary chemical process plants ranges roughly from __________ percent of the total product cost.

1 to 5
35 to 45
10 to 20
25 to 35

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Chemical Engineering Plant Economics
A balance sheet for a chemical plant shows its financial condition at any given date. It does not contain the __________ of the plant.

Profit
Current liability
Long term debt
Current asset

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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
Underemphasises liquidity
Gives a correct picture of profitability
Does not measure the discounted rate of return

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