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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
Increases linearly
Remains constant
Decreases

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

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Chemical Engineering Plant Economics
Which of the following does not come under the sales expenses for a product of a chemical plant?

Warehousing
Advertising
Customer service
Legal fees

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Chemical Engineering Plant Economics
A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual interest rate is 10%. The original cost of the reactor was Rs. 80000. The book value of the reactor after 5 years using sinking fund depreciation method will be Rs.

40096
43196
53196
60196

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Chemical Engineering Plant Economics
Depreciation is __________ in profit with time.

Decrease
No change
Increase
None of these

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

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

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