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Chemical Engineering :: Chemical Engineering Plant Economics

  1. A machine has an initial value of Rs. 5000, service life of 5 years and final salvage value of Rs. 1000. The annual depreciation cost by straight line method is Rs.

  2. A.

     300

    B.

     600

    C.

     800

    D.

     1000


  3. Fixed charges for a chemical plant does not include the

  4. A.

     Interest on borrowed money

    B.

     Rent of land and buildings

    C.

     Property tax, insurance and depreciation

    D.

     Repair and maintenance charges


  5. Which of the following is not a component of working capital?

  6. A.

     Raw materials is stock

    B.

     Finished products in stock

    C.

     Transportation facilities

    D.

     Semi-finished products in the process


  7. Functional depreciation of an equipment is the measure of decrease in its value due to its

  8. A.

     Ageing

    B.

     Wear and tear

    C.

     Obsolescence

    D.

     Breakdown or accident


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

  10. A.

     Linearly

    B.

     Non-linearily

    C.

     Exponentially

    D.

     Logarithmically


  11. The economic life of a large chemical process plant as compared to a small chemical plant is

  12. A.

     Only slightly more

    B.

     Much more

    C.

     Slightly less

    D.

     Almost equal


  13. Depreciation

  14. A.

     Costs (on annual basis) are constant when the straight line method is used for its determination

    B.

     Is the unavoidable loss in the value of the plant, equipment and materials with lapse in time

    C.

     Does figure in the calculation of income tax liability on cash flows from an investment

    D.

     All of the above


  15. The amount of compounded interest during 'n' interest periods is

  16. A.

     P[(1+i)n-1)]

    B.

     P(1 + i)n

    C.

     P(1 - i)n

    D.

     P(1 + in)


  17. Which of the following is the costliest source of getting hydrogen on commercial scale for the manufacture of nitrogeneous fertiliser?

  18. A.

     Coal gasification

    B.

     Steam reforming of naphtha

    C.

     Alectrolysis of water

    D.

     Coke oven gas


  19. The ratio of working capital to total capital investment for most chemical plants (except for non-seasonal based products) is in the range of __________ percent.

  20. A.

     0.1 to 1

    B.

     1 to 2

    C.

     10 to 20

    D.

     50 to 60