Chemical Engineering Plant Economics

Question: __________ of depreciation calculation accounts for the interest on investement.
[A].

Straight line method

[B].

Declining balance

[C].

both (a) and (b)

[D].

neither (a) nor (b).

Answer: Option D

Explanation:

No answer description available for this question.

Question: __________ method for profitability evaluation of a project does not account for investment cost due to land.
[A].

Net present worth

[B].

Pay out period

[C].

Discounted cash flow

[D].

Rate of return on investment

Answer: Option B

Explanation:

No answer description available for this question.

Question: Annual depreciation cost are not constant when, the __________ method of depreciation calculation is used.
[A].

straight line

[B].

sinking fund

[C].

present worth

[D].

declining balance.

Answer: Option D

Explanation:

No answer description available for this question.

Question: __________ of depreciation calculation does not take into account the interest on investments.
[A].

Present worth method

[B].

Sinking fund method

[C].

Sum of the years-digits method

[D].

all (a), (b) and (c)

Answer: Option C

Explanation:

No answer description available for this question.

Question: __________ taxes are based on gross earnings.
[A].

Property

[B].

Excise

[C].

Income

[D].

Capital gain

Answer: Option C

Explanation:

No answer description available for this question.

Question: Which of the following relationship is not correct is case of a chemical process plant ?
[A].

Manufacturing cost = direct product cost + fixed charges + plant overhead costs

[B].

General expenses = administrative expenses + distribution & marketing expenses

[C].

Total product cost = manufacturing cost + general expenses

[D].

Total product cost = direct production cost + plant overhead cost.

Answer: Option D

Explanation:

No answer description available for this question.

Question: Construction expenses are roughly __________ percent of the total direct cost of the plant.
[A].

2

[B].

10

[C].

30

[D].

50

Answer: Option B

Explanation:

No answer description available for this question.

Question: Fixed capital investment of a chemical plant is the total amount of money needed to supply the necessary plant and manufacturing facilities plus the working capital for operation of the facilities. Which of the following components of fixed capital investment requires minimum percentage of it ?
[A].

Electrical installation cost.

[B].

Equipment installation cost.

[C].

Cost for piping.

[D].

Equipment insulation cost.

Answer: Option D

Explanation:

No answer description available for this question.

Question: Following the six-tenth factor rule, if a log-log plot of capacity of the equipment vs. cost of the equipment is made, then a straight line is obtained, whose slope is equal to
[A].

0.1

[B].

0.6

[C].

0.2

[D].

0.8

Answer: Option B

Explanation:

No answer description available for this question.

Question: In an ordinary chemical plant, electrical installation cost may be about
[A].

10-15% of purchased equipment cost.

[B].

3-10% of fixed capital investment.

[C].

either (a) or (b).

[D].

neither (a) nor (b).

Answer: Option C

Explanation:

No answer description available for this question.