Chemical Engineering - Chemical Engineering Plant Economics - Discussion
Discussion Forum : Chemical Engineering Plant Economics - Section 2 (Q.No. 37)
37.
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 ?
Discussion:
4 comments Page 1 of 1.
M P SINGH said:
9 years ago
PAYBACK PERIOD = Y + A/B.
= 2 + 100/2.
= 2 + 5.
= 7YEARS.
= 2 + 100/2.
= 2 + 5.
= 7YEARS.
Jatoth Vijay said:
7 years ago
The Construction time is not included when calculating the Payback time.
So, the Answer is 5 years.
So, the Answer is 5 years.
(3)
Ashish said:
3 years ago
5 years is the right answer.
(3)
Saravanan said:
2 years ago
7 is the right answer because of getting production period is 2 years, so 5 years+ 2 years is total 7 years is payback period.
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