Chemical Engineering - Chemical Engineering Plant Economics

Exercise :: Chemical Engineering Plant Economics - Section 1

41. 

The payback method for the measurement of return on investment

A. gives a correct picture of profitability.
B. underemphasises liquidity.
C. does not measure the discounted rate of return.
D. takes into account the cash inflows after the recovery of investments.

Answer: Option C

Explanation:

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42. 

Annual depreciation costs are constant, when the __________ method of depreciation calculation is used.

A. declining balance
B. straight line
C. sum of the years digit
D. none of these

Answer: Option B

Explanation:

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43. 

Cost incurred towards __________ in a chemical plant is a component of the utilities cost.

A. water supply
B. running a control laboratory
C. property protection
D. medical services

Answer: Option A

Explanation:

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44. 

Equipment installation cost in a chemical process plant ranges from __________ percent of the purchased equipment cost.

A. 10 to 20
B. 35 to 45
C. 55 to 65
D. 70 to 80

Answer: Option B

Explanation:

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45. 

Annual depreciation cost are not constant when, the __________ method of depreciation calculation is used.

A. straight line
B. sinking fund
C. present worth
D. declining balance.

Answer: Option D

Explanation:

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