Project ForgePlant Design & Economics
Profitability Analysis
GATE 2009
Medium
The total fixed cost of a chemical plant is Rs. 10.0 lakhs; the internal rate of return is 15%, and the annual operating cost is Rs. 2.0 lakhs. The annualized cost of the plant (in lakhs of Rs.) is
- A1.8
- B2.6
- 3.5
- D4.3
Explanation
Annualized cost = fixed cost × interest rate + annual operating cost = 10×0.15+2.0=1.5+2.0=3.5 lakhs.
Source: GATE CH 2009 (2009)
This question is part of a 15-day revision cycle — sign in and Project Forge will bring it back the day before you'd forget it.