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Chemical Engineering Plant Economics

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

In-process inventory
Product inventory
Storage facilities
Minimum cash reserve

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

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

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Chemical Engineering Plant Economics
The ratio of working capital to total capital investment for most chemical plants (except for non-seasonal based products) is in the range of __________ percent.

0.1 to 1
10 to 20
50 to 60
1 to 2

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Chemical Engineering Plant Economics
Functional depreciation of an equipment is the measure of decrease in its value due to its

Wear and tear
Breakdown or accident
Ageing
Obsolescence

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Chemical Engineering Plant Economics
Which of the following is not a current asset of a chemical company?

Inventories
Chemical equipments
Marketable securities
None of these

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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
2.5 to 2.7
1.2 to 1.4
6.2 to 6.4

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