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Chemical Engineering :: Chemical Engineering Plant Economics

  1. Which of the following is the cheaptest material of construction for the storage of sodium hydroxide upto a concentration of 75% ?

  2. A.
    Stainless steel
    B.
    Plain carbon steel
    C.
    Nickel
    D.
    Copper

  3. The value of a property decreases __________ with time in straight line method of determining depreciation.

  4. A.
    linearly
    B.
    non-linearily
    C.
    exponentially
    D.
    logarithmically

  5. A present sum of Rs. 100 at the end of one year, with half yearly rate of interest at 10%, will be Rs.

  6. A.
    121
    B.
    110
    C.
    97
    D.
    91

  7. Maximum production start up cost for making a chemical plant operational is about __________ percent of the fixed capital cost.

  8. A.
    1
    B.
    5
    C.
    10
    D.
    30

  9. Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant ?

  10. A.
    Cash reserve.
    B.
    Rate of return on investment.
    C.
    Payout period.
    D.
    Discounted cash flow based on full life performance.

  11. 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

  12. A.
    decreases
    B.
    increases
    C.
    increases linearly
    D.
    remains constant

  13. __________ of depreciation calculation does not take into account the interest on investments.

  14. A.
    Present worth method
    B.
    Sinking fund method
    C.
    Sum of the years-digits method
    D.
    all (a), (b) and (c)

  15. Optimum economic pipe diameter for fluid is determined by the

  16. A.
    viscosity of the fluid.
    B.
    density of the fluid.
    C.
    total cost considerations (pumping cost plus fixed cost of the pipe).
    D.
    none of these.

  17. Pick out the wrong statement.

  18. A.
    Gross margin = net income - net expenditure
    B.
    Net sales realisation (NSR) = Gross sales - selling expenses
    C.
    At break even point, NSR is more than the total production cost
    D.
    Net profit = Gross margin - depreciation - interest

  19. Which of the following is not a current asset of a chemical company ?

  20. A.
    Inventories
    B.
    Marketable securities
    C.
    Chemical equipments
    D.
    None of these.