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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
Which of the following does not come under the sales expenses for a product of a chemical plant?

Legal fees
Advertising
Customer service
Warehousing

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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
Underemphasises liquidity
Gives a correct picture of profitability
Does not measure the discounted rate of return

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Chemical Engineering Plant Economics
Which of the following is a component of working capital investment?

Utilities plants
Depreciation
Process equipments
Maintenance and repair inventory

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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

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

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Chemical Engineering Plant Economics
Direct costs component of the fixed capital consists of

Contingencies
Labour costs
Raw material costs
Onsite and offsite costs

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Chemical Engineering Plant Economics
The ratio of gross annual sales to the fixed capital investment is termed as the __________ ratio.

Turnover
Capital
Investment
Cash reserve

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