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Fixed capital investment in a plant includes

  • A.Utilities consumed during production
  • B.Interest on working capital
  • C.Land, buildings and equipment
  • D.Raw material and wages

Answer: C

Correct answer: Land, buildings and equipment

Fixed capital is what is spent once to create the plant: land, buildings, equipment, installation, piping, instrumentation and engineering. Raw material, wages and utilities are recurring operating costs, and interest is a financing charge.

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