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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
Remains constant
Increases linearly
Decreases

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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

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

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

Labour costs
Raw material costs
Contingencies
Onsite and offsite costs

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

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

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

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

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Chemical Engineering Plant Economics
Profit is equal to revenue minus

Total cost
Book value
None of these
Operating cost

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