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

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

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Chemical Engineering Plant Economics
Payback period

Is the length of time over which the earnings on a project equals the investment
All of these
Is affected by the variation in earnings after the recovery of the investment
And economic life of a project are the same

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