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Chemical Engineering :: Chemical Engineering Plant Economics

  1. If an amount R is paid at the end of every year for 'n' years, then the net present value of the annuity at an interest rate of i is

  2. A.
    B.
    C.
    R(1 + i)n
    D.
    R/(1 + i)n

  3. A shareholder has __________ say in the affairs of company management compared to a debenture holder.

  4. A.
    more
    B.
    less
    C.
    same
    D.
    no

  5. Which of the following is not a component of the working capital for a chemical process plant ?

  6. A.
    Product inventory.
    B.
    In-process inventory.
    C.
    Minimum cash reserve.
    D.
    Storage facilities.

  7. A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual interest rate is 10%. The original cost of the reactor was Rs. 80000. The book value of the reactor after 5 years using sinking fund depreciation method will be Rs.

  8. A.
    40096
    B.
    43196
    C.
    53196
    D.
    60196

  9. Relative cost of chemical process plants in India is about __________ percent more than the similar plants in U.S.A.

  10. A.
    15
    B.
    35
    C.
    55
    D.
    75

  11. Which of the following methods of depreciation calculations results in book values greater than those obtained with straight line method ?

  12. A.
    Multiple straight line method
    B.
    Sinking fund method
    C.
    Declining balance method
    D.
    Sum of the years digit method

  13. Total product cost of a chemical plant does not include the __________ cost.

  14. A.
    market survey
    B.
    operating labour, supervision and supplies
    C.
    overhead and utilities
    D.
    depreciation, property tax and insur-rance

  15. Depreciation is __________ in profit with time.

  16. A.
    decrease
    B.
    increase
    C.
    no change
    D.
    none of these

  17. Gantt chart (or Bar chart) is helpful in

  18. A.
    efficient utilisation of manpower and machines.
    B.
    preparing production schedule.
    C.
    efficient despatching of products.
    D.
    inventory control.

  19. Profit is equal to revenue minus

  20. A.
    book value
    B.
    total cost
    C.
    operating cost
    D.
    none of these