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Chemical Engineering :: Chemical Engineering Plant Economics

  1. 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?

  2. A.

     Electrical installation cost

    B.

     Equipment installation cost

    C.

     Cost for piping

    D.

     Equipment insulation cost


  3. __________ taxes are based on gross earnings.

  4. A.

     Property

    B.

     Excise

    C.

     Income

    D.

     Capital gain


  5. Break-even point is the point of intersection of

  6. A.

     Fixed cost and total cost

    B.

     Total cost and sales revenue

    C.

     Fixed cost and sales revenue

    D.

     None of these


  7. The __________ of a chemical company can be obtained directly from the balance sheet as the difference between current assets and current liabilities.

  8. A.

     Cash ratio

    B.

     Net working capital

    C.

     Current ratio

    D.

     Liquids assets


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

  10. A.

     Efficient utilisation of manpower and machines

    B.

     Preparing production schedule

    C.

     Efficient despatching of products

    D.

     Inventory control


  11. Optimum number of effects in a multiple effect evaporator is decided by the

  12. A.

     Cost benefit analysis

    B.

     Floor area availability

    C.

     Terminal parameters

    D.

     Evaporation capacity required


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

  16. A.

     Present worth method

    B.

     Sinking fund method

    C.

     Sum of the years-digits method

    D.

     All of the above


  17. Which of the following elements is not included in the scope of market analysis?

  18. A.

     Competition from other manufactures

    B.

     Product distribution

    C.

     Opportunities

    D.

     Economics


  19. 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

  20. A.

     R[((1 + i)n - 1)/i]

    B.

     [((1 + i)n - 1)/i(1 + i)n]

    C.

     R(1 + i)n

    D.

     R/(1 + i)n