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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
Profit is equal to revenue minus

Total cost
Operating cost
None of these
Book value

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Chemical Engineering Plant Economics
Cost of instrumentation in a modern chemical plant ranges from __________ percent of the total plant cost.

60 to 70
5 to 10
20 to 30
40 to 50

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Chemical Engineering Plant Economics
'Six-tenth factor' rule is used for estimating the

Equipment cost by scaling
Equipment installation cost
Utilities cost
Cost of piping

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

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

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

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

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Chemical Engineering Plant Economics
Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant?

Cash reserve
Rate of return on investment
Discounted cash flow based on full life performance
Payout period

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