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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

Decreases
Increases
Remains constant
Increases linearly

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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?

Rate of return on investment
Cash reserve
Discounted cash flow based on full life performance
Payout period

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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
12 years
10 years
5 years

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Chemical Engineering Plant Economics
Which of the following methods of depreciation calculations results in book values greater than those obtained with straight line method?

Multiple straight line method
Sum of the years digit method
Declining balance method
Sinking fund method

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Chemical Engineering Plant Economics
Cost incurred towards __________ in a chemical plant is a component of the utilities cost.

Running a control laboratory
Water supply
Medical services
Property protection

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Chemical Engineering Plant Economics
Expenditure on research and development (R & D) is categorised as the __________ , while making an estimate of the total product cost for a chemical plant.

General expenses
Fixed expenses
Overhead cost
Direct production cost

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