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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
If an amount R is paid at the end of every year for 'n' years, then the net present value of the annuity at an interest rate of i is

R/(1 + i)n
R(1 + i)n
R[((1 + i)n - 1)/i]
[((1 + i)n - 1)/i(1 + i)n]

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Chemical Engineering Plant Economics
The __________ of a chemical company can be obtained directly from the balance sheet as the difference between current assets and current liabilities.

Cash ratio
Liquids assets
Net working capital
Current ratio

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Chemical Engineering Plant Economics
Equipment installation cost in a chemical process plant ranges from __________ percent of the purchased equipment cost.

10 to 20
55 to 65
70 to 80
35 to 45

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Chemical Engineering Plant Economics
Purchased cost of equipments for a chemical process plant ranges from __________ percent of the fixed capital investment.

45 to 60
65 to 75
10 to 20
20 to 40

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Chemical Engineering Plant Economics
For a typical project, the cumulative cash flow is zero at the

End of the design stage
End of the project life
Start up
Break even point

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