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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be __________ percent.

>20
10
20
< 20

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Chemical Engineering Plant Economics
A series of equal payments (e.g., deposit or cost) made at equal intervals of time is known as

Annuity
Perpetuity
Future worth
Capital charge factor

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

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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?

Raw materials inventory
Emergency facilities
Utilities plants
Process equipment

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Chemical Engineering Plant Economics
Fixed charges for a chemical plant does not include the

Repair and maintenance charges
Rent of land and buildings
Property tax, insurance and depreciation
Interest on borrowed money

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Chemical Engineering Plant Economics
Nominal and effective interest rates are equal, when the interest is compounded

Semi-annually
In no case, they are equal
Annually
Quarterly

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