PLANT DESIGN AND ECONOMICS QUIZ 2019

Q. 1 Consider two competing equipment A and B. For a compound interest rate of 10% per annum, in order for equipment B to be the economically cheaper option, its minimum life (in years) is.......................(rounded off to the next higher integer).

Q. 2 A taxi-car is bought for Rs. 10 lakhs. Its salvage value is zero. The expected yearly income after paying all expenses and applicable taxes is Rs. 3 lakhs. The compound interest rate is 9% per annum. The discounted payback period (in years), is .......................(rounded off to the next higher integer).