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- Question
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
Options- A. 15%
- B. 10%
- C. 1.5%
- D. 150%
- Correct Answer
- 1.5%
- 1. '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.
Options- A. l to 5
- B. 10 to 20
- C. 25 to 35
- D. 35 to 45 Discuss
- 2. __________ taxes are based on gross earnings.
Options- A. Property
- B. Excise
- C. Income
- D. Capital gain Discuss
- 3. In which of the electric power generation system, the operating cost is minimum?
Options- A. Thermal
- B. Nuclear
- C. Hydroelectric
- D. Fast breeder reactor Discuss
- 4. Nominal and effective interest rates are equal, when the interest is compounded
Options- A. quarterly
- B. semi-annually
- C. annually
- D. in no case, they are equal Discuss
- 5. A series of equal payments (e.g., deposit or cost) made at equal intervals of time is known as
Options- A. perpetuity
- B. capital charge factor
- C. annuity
- D. future worth Discuss
- 6. 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.
Options- A. 0.1 to 1
- B. 1 to 2
- C. 10 to 20
- D. 50 to 60 Discuss
- 7. Construction expenses are roughly __________ percent of the total direct cost of the plant.
Options- A. 2
- B. 10
- C. 30
- D. 50 Discuss
- 8. Pick out the wrong statement.
Options- A. The annual depreciation rate for machinery and equipments in a chemical process plant is about 10% of the fixed capital investment.
- B. Annual depreciation rate of buildings in a chemical plant is about 3% of its initial cost.
- C. Insurance rates on annual basis in a chemical plant may be about 1% of the fixed capital investment.
- D. In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR). Discuss
- 9. Annual depreciation cost are not constant when, the __________ method of depreciation calculation is used.
Options- A. straight line
- B. sinking fund
- C. present worth
- D. declining balance. Discuss
- 10. The economic life of a large chemical process plant as compared to a small chemical plant is
Options- A. only slightly more
- B. much more
- C. slightly less
- D. almost equal Discuss
Chemical Engineering Plant Economics problems
Search Results
Correct Answer: 10 to 20
Correct Answer: Income
Correct Answer: Hydroelectric
Correct Answer: annually
Correct Answer: annuity
Correct Answer: 10 to 20
Correct Answer: 10
Correct Answer: In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR).
Correct Answer: declining balance.
Correct Answer: much more
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