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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
Most chemical plants use an initial working capital amounting to 10-20% of the total capital investment. But this percentage may increase to __________ percent in case of seasonal products manufacturing plant.

95
30
75
50

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Chemical Engineering Plant Economics
A balance sheet for an industrial concern shows

Only current and fixed assets
Only fixed assets
Only current assets
The financial condition at any given time

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

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

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

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

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Chemical Engineering Plant Economics
'Lang factor' is defined as the ratio of the capital investment to the delivered cost of major equipments. The value of 'Lang factor' for fixed capital investment, for a solid-fluid processing chemical plant ranges from

1.2 to 1.4
6.2 to 6.4
2.5 to 2.7
4.2 to 4.4

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Chemical Engineering Plant Economics
A machine has an initial value of Rs. 5000, service life of 5 years and final salvage value of Rs. 1000. The annual depreciation cost by straight line method is Rs.

300
600
800
1000

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