Payback period____________________?
Correct answer: B. Is the length of time over which the earnings on a project equals the investment
- A. And economic life of a project are the same
- B. Is the length of time over which the earnings on a project equals the investment
- C. Is affected by the variation in earnings after the recovery of the investment
- D. All A, B. and C
Explanation
The payback period is the time required for a project's cumulative earnings or cash inflows to recover its initial investment. It is not necessarily equal to the economic life and does not depend on earnings received after the investment has been recovered.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
Practise Plant Design and Economics
803 free Plant Design and Economics MCQs from Chemical Engineering, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Chemical Engineering questions like this
Chemical Engineering is on this paper prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for it.
More Plant Design and Economics questions
Which of the following is not a component of depreciation cost ?
Direct costs component of the fixed capital consists of _____________________?
In which of the electric power generation system, the operating cost is minimum ?
The inventory of raw materials included in the working capital is usually about ______________ month‟s supply of raw materials valued at delivery prices?
The ratio of working capital to total capital investment for most chemical plants (except for non-seasonal based products) is in the range of _____________ percent ?
A series of equal payments (e.g., deposit or cost) made at equal intervals of time is known as __________________?