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Chemical Engineering Plant Economics

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
If an amount R is paid at the end of every year for 'n' years, then the net present value of the annuity at an interest rate of i is

R[((1 + i)n - 1)/i]
R(1 + i)n
R/(1 + i)n
[((1 + i)n - 1)/i(1 + i)n]

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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?

7 years
5 years
12 years
10 years

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Chemical Engineering Plant Economics
For a typical project, the cumulative cash flow is zero at the

End of the project life
End of the design stage
Start up
Break even point

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Chemical Engineering Plant Economics
Which of the following elements is not included in the scope of market analysis?

Opportunities
Product distribution
Competition from other manufactures
Economics

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Chemical Engineering Plant Economics
Factory manufacturing cost is the sum of the direct production cost

Fixed charges and plant overhead cost
And plant overhead cost
None of these
Plant overhead cost and administrative expenses

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