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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
Equipment installation cost in a chemical process plant ranges from __________ percent of the purchased equipment cost.

10 to 20
70 to 80
55 to 65
35 to 45

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Chemical Engineering Plant Economics
The economic life of a large chemical process plant as compared to a small chemical plant is

Only slightly more
Almost equal
Slightly less
Much more

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Chemical Engineering Plant Economics
Functional depreciation of an equipment is the measure of decrease in its value due to its

Ageing
Breakdown or accident
Wear and tear
Obsolescence

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Chemical Engineering Plant Economics
In financial accounting of a chemical plant, which of the following relationship is invalid?

Assets = equities
Total income = costs + profits
Assets = liabilities + net worth
Assets = capital

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Chemical Engineering Plant Economics
The payback method for the measurement of return on investment

Underemphasises liquidity
Gives a correct picture of profitability
Takes into account the cash inflows after the recovery of investments
Does not measure the discounted rate of return

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Chemical Engineering Plant Economics
An investment of Rs. 1000 is carrying an interest of 10% compounded quarterly. The value of the investment at the end of five years will be

1000 (1 + 0.1/4)5
1000 (1 + 0.1)20
1000 (1 + 0.1/4)20
1000 (1 + 0.1/2)5

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