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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

Remains constant
Increases
Decreases
Increases linearly

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Chemical Engineering Plant Economics
Total product cost of a chemical plant does not include the __________ cost.

Depreciation, property tax and insur-rance
Market survey
Overhead and utilities
Operating labour, supervision and supplies

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Chemical Engineering Plant Economics
Which of the following is a component of working capital investment?

Depreciation
Process equipments
Utilities plants
Maintenance and repair inventory

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Chemical Engineering Plant Economics
Which of the following is not a component of the fixed capital for a chemical plant facility?

Process equipment
Raw materials inventory
Utilities plants
Emergency facilities

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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

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

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Chemical Engineering Plant Economics
If 'S' is the amount available after 'n' interest periods for an initial principal 'P' with the discrete compound interest rate 'i', the present worth is given by

(1 + i)n/S
S/(1 + n)i
S/(1 + i)n
S/(1 + in)

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