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Chemical Engineering Plant Economics

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

Ageing
Wear and tear
Breakdown or accident
Obsolescence

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

Monthly
Annually
half-yearly
Fortnightly

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

Utilities plants
Raw materials inventory
Emergency facilities
Process equipment

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Chemical Engineering Plant Economics
Which of the following methods of depreciation calculations results in book values greater than those obtained with straight line method?

Multiple straight line method
Sinking fund method
Sum of the years digit method
Declining balance method

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

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

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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
7 years
10 years
12 years

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