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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
Decreases
Remains constant
Increases

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Chemical Engineering Plant Economics
Manufacturing cost in a chemical company does not include the

Fixed charges
Direct products cost
Administrative expenses
Plant overheads

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

Labour costs
Contingencies
Raw material costs
Onsite and offsite costs

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Chemical Engineering Plant Economics
A present sum of Rs. 100 at the end of one year, with half yearly rate of interest at 10%, will be Rs.

97
121
110
91

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Chemical Engineering Plant Economics
Fixed charges for a chemical plant does not include the

Rent of land and buildings
Repair and maintenance charges
Property tax, insurance and depreciation
Interest on borrowed money

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Chemical Engineering Plant Economics
An investment of Rs. 100 lakhs is to be made for construction of a plant, which will take two years to start production. The annual profit from the operation of the plant is Rs. 20 lakhs. What will be the pay back time?

7 years
5 years
10 years
12 years

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