9/6/2019 Chemical Engineering Plant Economics MCQ Questions & Answers | Chemical Engineering Page-6 section-1

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Chemical Engineering Plant Economics MCQ Questions & Answers | Chemical Engineering
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Section 1 (https://www.examveda.com/chemical-engineering/practice-mcq-question-on-chemical-engineering-plant-economics/?section=1)

Section 2 (https://www.examveda.com/chemical-engineering/practice-mcq-question-on-chemical-engineering-plant-economics/?section=2)

26. If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be
__________ percent.

A. 10

B. 20

C. >20

D. < 20

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27. The inventory of raw materials included in the working capital is usually about __________ months supply of raw
materials valued at delivery prices.

A. One

B. Three

C. Six

D. Twelve

Answer & Solution

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28. 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?

A. 5 years

B. 7 years

C. 12 years

D. 10 years

Answer & Solution

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29. 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 & Solution

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

A. End of the project life

B. Break even point

C. Start up

D. End of the design stage

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