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Chemical Engineering Plant Economics MCQs

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Practice free Chemical Engineering Plant Economics multiple-choice questions with instant answer feedback and step-by-step solutions. Click an option to check yourself, reveal the full explanation, and work through all 108 questions — no login required.

Question 28hard

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?

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Question 29hard

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

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Question 30medium

For a typical project, the cumulative cash flow is zero at the

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Question 31hard

A machine has an initial value of Rs. 5000, service life of 5 years and final salvage value of Rs. 1000. The annual depreciation cost by straight line method is Rs.

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Question 32medium

Fixed charges for a chemical plant does not include the

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Question 33medium

Which of the following is not a component of working capital?

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Question 34medium

Functional depreciation of an equipment is the measure of decrease in its value due to its

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Question 35medium

The value of a property decreases __________ with time in straight line method of determining depreciation.