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


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

  • Correct Answer
  • Pay out period 


  • Chemical Engineering Plant Economics problems


    Search Results


    • 1. Which of the following is not a component of depreciation cost?

    • Options
    • A. Repairs and maintenance cost.
    • B. Loss due to obsolescence of the equipment.
    • C. Loss due to decrease in the demand of product.
    • D. Loss due to accident/breakdown in the machinery.
    • Discuss
    • 2. Which of the following is the costliest material of construction used in pressure vessel construction?

    • Options
    • A. Low alloy steel
    • B. Lead
    • C. Titanium
    • D. High alloy steel
    • Discuss
    • 3. Operating profit of a chemical plant is equal to

    • Options
    • A. profit before interest and tax i.e., net profit + interest + tax
    • B. profit after tax plus depreciation
    • C. net profit + tax
    • D. profit after tax
    • Discuss
    • 4. Scheduling provides information about the

    • Options
    • A. proper utilisation of machines.
    • B. means to minimise idle time for machines.
    • C. time of completion of job.
    • D. time of starting of job and also about how much work should be completed during a particular period.
    • Discuss
    • 5. Personnel working in the market research group is reponsible for the job of

    • Options
    • A. equipment selection.
    • B. product evaluation.
    • C. equipment design.
    • D. cost estimation.
    • Discuss
    • 6. Which of the following relationship is not correct is case of a chemical process plant?

    • Options
    • A. Manufacturing cost = direct product cost + fixed charges + plant overhead costs
    • B. General expenses = administrative expenses + distribution & marketing expenses
    • C. Total product cost = manufacturing cost + general expenses
    • D. Total product cost = direct production cost + plant overhead cost.
    • Discuss
    • 7. In a manufacturing industry, break even point occurs, when the

    • Options
    • A. total annual rate of production equals the assigned value.
    • B. total annual product cost equals the total annual sales.
    • C. annual profit equals the expected value.
    • D. annual sales equals the fixed cost.
    • Discuss
    • 8. If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be __________ percent.

    • Options
    • A. 10
    • B. 20
    • C. >20
    • D. < 20
    • Discuss
    • 9. Pick out the wrong statement.

    • Options
    • A. Net worth means paid up share capital and reserve & surplus (i.e. shareholders equity).
    • B. Return on equity = profit after tax/net worth.
    • C. Working capital turn over ratio = sales/net working capital.
    • D. Total cost of production is more than net sales realisation (NSR) at break even point.
    • Discuss
    • 10. "Break-even point" is the point of intersection of

    • Options
    • A. fixed cost and total cost.
    • B. total cost and sales revenue.
    • C. fixed cost and sales revenue.
    • D. none of these.
    • Discuss


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