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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
Effective and nominal interest rates are equal, when the interest is compounded

half-yearly
Annually
Monthly
Fortnightly

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

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Chemical Engineering Plant Economics
'Six-tenth factor' rule is used for estimating the

Cost of piping
Equipment installation cost
Utilities cost
Equipment cost by scaling

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Chemical Engineering Plant Economics
Expenditure on research and development (R & D) is categorised as the __________ , while making an estimate of the total product cost for a chemical plant.

General expenses
Fixed expenses
Overhead cost
Direct production cost

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Chemical Engineering Plant Economics
Purchased cost of equipments for a chemical process plant ranges from __________ percent of the fixed capital investment.

20 to 40
10 to 20
45 to 60
65 to 75

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Chemical Engineering Plant Economics
The amount of simple interest during 'n' interest period is (where, i = interest rate based on the length of one interest period, p = principal)

P(1 + i.n)
P.i.n.
P(1 - i.n)
P(1 + i)n

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