Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant ?
Correct answer: A. Cash reserve
- A. Cash reserve
- B. Rate of return on investment
- C. Payout period
- D. Discounted cash flow based on full life performance
Explanation
Cash reserve is a component of working capital, not a profitability-evaluation method. Rate of return, payout period, and discounted cash flow are standard methods for judging process profitability.
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