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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
With increase in the discounted cash flow rate of return, the ratio of the total present value to the initial investment of a given project

Increases linearly
Increases
Decreases
Remains constant

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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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Chemical Engineering Plant Economics
Following the six-tenth factor rule, if a log-log plot of capacity of the equipment vs. cost of the equipment is made, then a straight line is obtained, whose slope is equal to

0.2
0.1
0.6
0.8

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Chemical Engineering Plant Economics
Break-even point is the point of intersection of

Fixed cost and sales revenue
Fixed cost and total cost
Total cost and sales revenue
None of these

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Chemical Engineering Plant Economics
A series of equal payments (e.g., deposit or cost) made at equal intervals of time is known as

Annuity
Capital charge factor
Perpetuity
Future worth

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Chemical Engineering Plant Economics
Annual depreciation cost are not constant when, the __________ method of depreciation calculation is used.

Straight line
Sinking fund
Present worth
Declining balance

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