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Chemical Engineering Plant Economics

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

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

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Chemical Engineering Plant Economics
Cost incurred towards __________ in a chemical plant is a component of the utilities cost.

Property protection
Water supply
Running a control laboratory
Medical services

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

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Chemical Engineering Plant Economics
The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is

150%
10%
15%
1.5%

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Chemical Engineering Plant Economics
In an ordinary chemical plant, electrical installation cost may be about

Either A or B
Neither A nor B
3-10% of fixed capital investment
10-15% of purchased equipment cost

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Chemical Engineering Plant Economics
Break-even point is the point of intersection of

Fixed cost and total cost
Fixed cost and sales revenue
None of these
Total cost and sales revenue

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