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Chemical Engineering Plant Economics

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

Raw material costs
Contingencies
Onsite and offsite costs
Labour costs

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Chemical Engineering Plant Economics
If 'S' is the amount available after 'n' interest periods for an initial principal 'P' with the discrete compound interest rate 'i', the present worth is given by

S/(1 + i)n
(1 + i)n/S
S/(1 + in)
S/(1 + n)i

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Chemical Engineering Plant Economics
Which of the following is not a component of the working capital for a chemical process plant?

Storage facilities
Product inventory
In-process inventory
Minimum cash reserve

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Chemical Engineering Plant Economics
The value of a property decreases __________ with time in straight line method of determining depreciation.

Linearly
Exponentially
Logarithmically
Non-linearily

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Chemical Engineering Plant Economics
Optimum number of effects in a multiple effect evaporator is decided by the

Floor area availability
Terminal parameters
Evaporation capacity required
Cost benefit analysis

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

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