Category: Plant-Economics

Payback period____________________?

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

Depreciation________________?

A. Costs (on annual basis) are constant when the straight line method is used for its
determination
B. Is the unavoidable loss in the value of the plant, equipment and materials with lapse in time
C. Does figure in the calculation of income tax liability on cash flows from an investment
D. All A, B. and C.