Chemical Engineering Plant Economics Questions

• __________ taxes are based on gross earnings.
• 'Utilities' in a chemical process plant includes compressed air, steam, water, electrical power, oxygen, acetylene, fuel gases etc. Utility costs for ordinary chemical process plants ranges roughly from __________ percent of the total product cost.
• The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is
• 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.
• Construction expenses are roughly __________ percent of the total direct cost of the plant.
• Pick out the wrong statement.
• Annual depreciation cost are not constant when, the __________ method of depreciation calculation is used.
• The economic life of a large chemical process plant as compared to a small chemical plant is
• __________ of depreciation calculation accounts for the interest on investement.
• Which of the following is a component of working capital investment?
• The amount of compounded interest during 'n' interest periods is
• 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?
• Optimum economic pipe diameter for fluid is determined by the
• 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.
• The value of a property decreases __________ with time in straight line method of determining depreciation.
• A present sum of Rs. 100 at the end of one year, with half yearly rate of interest at 10%, will be Rs.
• The amount of simple interest during 'n' interest period is (where, i = interest rate based on the length of one interest period, p = principal)
• 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
• Factory manufacturing cost is the sum of the direct production cost
• Total product cost of a chemical plant does not include the __________ cost.