Chemical Engineering - Chemical Engineering Plant Economics

Exercise :: Chemical Engineering Plant Economics - Section 1

6. 

__________ method for profitability evaluation of a project does not account for investment cost due to land.

A. Net present worth
B. Pay out period
C. Discounted cash flow
D. Rate of return on investment

Answer: Option B

Explanation:

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7. 

The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is

A. 15%
B. 10%
C. 1.5%
D. 150%

Answer: Option C

Explanation:

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8. 

Nominal and effective interest rates are equal, when the interest is compounded

A. quarterly
B. semi-annually
C. annually
D. in no case, they are equal

Answer: Option C

Explanation:

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9. 

Which of the following elements is not included in the scope of market analysis ?

A. Competition from other manufactures.
B. Product distribution.
C. Opportunities
D. Economics

Answer: Option D

Explanation:

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10. 

__________ of depreciation calculation accounts for the interest on investement.

A. Straight line method
B. Declining balance
C. both (a) and (b)
D. neither (a) nor (b).

Answer: Option D

Explanation:

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