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Chemical engineering plant economics
1-Dont try to cram or spend more time here just read it fast and cover syllabus then practice MCQ's cheptor of same topic to check your progress. . |
2-Wrong options are also given but dont concentrate there, Right answer is in bold format. |
Q21 ⇒ If 'S' is the amount available after 'n' interest periods for an initial principal 'P' with the discrete compound interest rate 'i', the present worth is given by S/(1 + i)n [other wrong options] [Discuss in forum] (1 + i)n/S S/(1 + in) S/(1 + n)i |
Q22 ⇒ With increase in the discounted cash flow rate of return, the ratio of the total present value to the initial investment of a given project decreases [other wrong options] [Discuss in forum] increases increases linearly remains constant |
Q23 ⇒ Expenditure on research and development (R & D) is categorised as the __________ , while making an estimate of the total product cost for a chemical plant. general expenses [other wrong options] [Discuss in forum] overhead cost fixed expenses direct production cost |
Q24 ⇒ Purchased cost of equipments for a chemical process plant ranges from __________ percent of the fixed capital investment. 20 to 40 [other wrong options] [Discuss in forum] 10 to 20 45 to 60 65 to 75 |
Q25 ⇒ Which of the following is the costliest source of getting hydrogen on commercial scale for the manufacture of nitrogeneous fertiliser ? Alectrolysis of water [other wrong options] [Discuss in forum] Coal gasification Steam reforming of naphtha Coke oven gas |
Q26 ⇒ __________ method for profitability evaluation of a project does not account for investment cost due to land. Pay out period [other wrong options] [Discuss in forum] Net present worth Discounted cash flow Rate of return on investment |
Q27 ⇒ The depreciation during the year 'n', in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage 'N' to the book value at the end of (n - 1)th year, [other wrong options] [Discuss in forum] initial cost. depreciation during the (n - 1)th year. difference between initial cost and salvage value. |
Q28 ⇒ __________ taxes are based on gross earnings. Income [other wrong options] [Discuss in forum] Property Excise Capital gain |
Q29 ⇒ "Break-even point" is the point of intersection of total cost and sales revenue. [other wrong options] [Discuss in forum] fixed cost and total cost. fixed cost and sales revenue. none of these. |
Q30 ⇒ A machine has an initial value of Rs. 5000, service life of 5 years and final salvage value of Rs. 1000. The annual depreciation cost by straight line method is Rs. 800 [other wrong options] [Discuss in forum] 300 600 1000 |
Q31 ⇒ Depreciation is __________ in profit with time. decrease [other wrong options] [Discuss in forum] increase no change none of these |
Q32 ⇒ The value of a property decreases __________ with time in straight line method of determining depreciation. linearly [other wrong options] [Discuss in forum] non-linearily exponentially logarithmically |
Q33 ⇒ The ratio of working capital to total capital investment for most chemical plants (except for non-seasonal based products) is in the range of __________ percent. 10 to 20 [other wrong options] [Discuss in forum] 0.1 to 1 1 to 2 50 to 60 |
Q34 ⇒ The amount of compounded interest during 'n' interest periods is p[(1+i)n-1)] [other wrong options] [Discuss in forum] p(1 + i)n p(1 - i)n p(1 + in) |
Q35 ⇒ Operating profit of a chemical plant is equal to profit before interest and tax i.e., net profit + interest + tax [other wrong options] [Discuss in forum] profit after tax plus depreciation net profit + tax profit after tax |
Q36 ⇒ The 'total capital investment' for a chemical process plant comprises of the fixed capital investment and the working capital [other wrong options] [Discuss in forum] overhead cost indirect production cost direct production cost |
Q37 ⇒ 'Utilities' in a chemical process plant includes compressed air, steam, water, electrical power, oxygen, acetylene, fuel gases etc. Utility costs for ordinary chemical process plants ranges roughly from __________ percent of the total product cost. 10 to 20 [other wrong options] [Discuss in forum] l to 5 25 to 35 35 to 45 |
Q38 ⇒ Effective and nominal interest rates are equal, when the interest is compounded annually [other wrong options] [Discuss in forum] fortnightly monthly half-yearly |
Q39 ⇒ In an ordinary chemical plant, electrical installation cost may be about either (a) or (b). [other wrong options] [Discuss in forum] 10-15% of purchased equipment cost. 3-10% of fixed capital investment. neither (a) nor (b). |
Q40 ⇒ Annual depreciation cost are not constant when, the __________ method of depreciation calculation is used. declining balance. [other wrong options] [Discuss in forum] straight line sinking fund present worth |
Or |