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Chemical Engineering Plant Economics

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

10%
150%
1.5%
15%

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Chemical Engineering Plant Economics
Which of the following is not a component of the working capital for a chemical process plant?

Storage facilities
In-process inventory
Minimum cash reserve
Product inventory

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Chemical Engineering Plant Economics
Factory manufacturing cost is the sum of the direct production cost

And plant overhead cost
Plant overhead cost and administrative expenses
Fixed charges and plant overhead cost
None of these

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

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

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Chemical Engineering Plant Economics
The value of a property decreases __________ with time in straight line method of determining depreciation.

Exponentially
Linearly
Non-linearily
Logarithmically

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Chemical Engineering Plant Economics
The economic life of a large chemical process plant as compared to a small chemical plant is

Only slightly more
Much more
Almost equal
Slightly less

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