Chemical Engineering Plant Economics Quiz Questions & Answers Pdf - 2

Question: 6

Sensitivity analysis is carried out for risk assessment. Which of the following is a macro factor for sensitivity analysis?

(A) change in tax rates

(B) change of firms of finance

(C) change in project duration

(D) change in capital structure

Question: 7

Expenditure on research and development (R & D) is categorised as the _____ while making an estimate of the total product cost for a chemical plant.

(A) direct production cost

(B) general expenses

(C) fixed expenses

(D) overhead cost

Question: 8

The factor that reflects best on the risk of the project, while evaluating the present value of the expected future cash flow is the

(A) loan interest rate

(B) fuel cost inflation

(C) life of project

(D) discount rate

Question: 9

Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant?

(A) discounted cash flow based on full life performance

(B) payout period

(C) cash reserve

(D) rate of return on investment

Question: 10

Which one is not a macro factor in sensitivity analysis?

(A) technology changes

(B) cost of debt

(C) change in interest rate

(D) change in tax rates