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  • Question
  • Cost of instrumentation in a modern chemical plant ranges from __________ percent of the total plant cost.


  • Options
  • A. 5 to 10
  • B. 20 to 30
  • C. 40 to 50
  • D. 60 to 70

  • Correct Answer
  • 20 to 30 


  • Chemical Engineering Plant Economics problems


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    • 1. Out of the following, the depreciation calculated by the __________ method is the maximum.

    • Options
    • A. diminishing balance
    • B. straight line
    • C. sum of the years digit
    • D. sinking fund
    • Discuss
    • 2. 'P' is the investment made on an equipment, 'S' is its salvage value and 'n is the life of the equipment in years. The depreciation for rath year by the sum-of years digit method will be

    • Options
    • A.
    • B.
    • C.
    • D.
    • Discuss
    • 3. Constituents of stellite are

    • Options
    • A. zinc, copper and nickel.
    • B. cobalt, chromium and tungsten.
    • C. zinc, aluminium and nickel.
    • D. nickel, cobalt and vanadium.
    • Discuss
    • 4. Residual magnetism in steel for magnets is increased by the addition of

    • Options
    • A. nickel
    • B. cobalt
    • C. tungsten
    • D. chromium
    • Discuss
    • 5. Addition of __________ to the steel helps in increasing the residual magnetism in steel used for making magnets.

    • Options
    • A. chromium
    • B. nickel
    • C. tungsten
    • D. cobalt
    • Discuss
    • 6. Fixed charges for a chemical plant does not include the

    • Options
    • A. interest on borrowed money.
    • B. rent of land and buildings.
    • C. property tax, insurance and depreciation.
    • D. repair and maintenance charges.
    • Discuss
    • 7. 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.

    • Options
    • A. 300
    • B. 600
    • C. 800
    • D. 1000
    • Discuss
    • 8. 'Six-tenth factor' rule is used for estimating the

    • Options
    • A. equipment installation cost.
    • B. equipment cost by scaling.
    • C. cost of piping.
    • D. utilities cost.
    • Discuss
    • 9. Payback period

    • Options
    • A. and economic life of a project are the same.
    • B. is the length of time over which the earnings on a project equals the investment.
    • C. is affected by the variation in earnings after the recovery of the investment.
    • D. all (a), (b) and (c).
    • Discuss
    • 10. The payback method for the measurement of return on investment

    • Options
    • A. gives a correct picture of profitability.
    • B. underemphasises liquidity.
    • C. does not measure the discounted rate of return.
    • D. takes into account the cash inflows after the recovery of investments.
    • Discuss


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