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Chemical Engineering :: Chemical Engineering Plant Economics

  1. Utilities cost in the operation of chemical process plant comes under the

  2. A.

     Plant overhead cost

    B.

     Fixed charges

    C.

     Direct production cost

    D.

     General expenses


  3. Which of the following does not come under the sales expenses for a product of a chemical plant?

  4. A.

     Advertising

    B.

     Warehousing

    C.

     Legal fees

    D.

     Customer service


  5. Most chemical plants use an initial working capital amounting to 10-20% of the total capital investment. But this percentage may increase to __________ percent in case of seasonal products manufacturing plant.

  6. A.

     30

    B.

     50

    C.

     75

    D.

     95


  7. According to six-tenths-factor rule, if the cost of a given unit at one capacity is known, then the cost of similar unit with '' times the capacity of the first unit is approximately equal to __________ times the cost of the initial unit.

  8. A.

     N

    B.

     N0.6

    C.

     N0.4

    D.

     √n


  9. An investment of Rs. 1000 is carrying an interest of 10% compounded quarterly. The value of the investment at the end of five years will be

  10. A.

     1000 (1 + 0.1/4)20

    B.

     1000 (1 + 0.1)20

    C.

     1000 (1 + 0.1/4)5

    D.

     1000 (1 + 0.1/2)5


  11. Direct costs component of the fixed capital consists of

  12. A.

     Contingencies

    B.

     Onsite and offsite costs

    C.

     Labour costs

    D.

     Raw material costs


  13. Purchased cost of equipments for a chemical process plant ranges from __________ percent of the fixed capital investment.

  14. A.

     10 to 20

    B.

     20 to 40

    C.

     45 to 60

    D.

     65 to 75


  15. Cost of piping in a fluid processing unit (e.g., distillation) of a chemical process plant is about __________ percent of the fixed capital investment.

  16. A.

     4

    B.

     13

    C.

     22

    D.

     34


  17. 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

  18. A.

     (1 + i)n/S

    B.

     S/(1 + i)n

    C.

     S/(1 + in)

    D.

     S/(1 + n)i


  19. Equipment installation cost in a chemical process plant ranges from __________ percent of the purchased equipment cost.

  20. A.

     10 to 20

    B.

     35 to 45

    C.

     55 to 65

    D.

     70 to 80