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  • Question
  • Which of the following is a component of working capital investment?


  • Options
  • A. Utilities plants.
  • B. Maintenance and repair inventory.
  • C. Process equipments.
  • D. Depreciation.

  • Correct Answer
  • Maintenance and repair inventory. 


  • Chemical Engineering Plant Economics problems


    Search Results


    • 1. __________ of depreciation calculation accounts for the interest on investement.

    • Options
    • A. Straight line method
    • B. Declining balance
    • C. both (a) and (b)
    • D. neither (a) nor (b).
    • Discuss
    • 2. 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
    • 3. 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
    • 4. 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
    • 5. Construction expenses are roughly __________ percent of the total direct cost of the plant.

    • Options
    • A. 2
    • B. 10
    • C. 30
    • D. 50
    • Discuss
    • 6. The reason for excessive clinker formation in gas producers is the

    • Options
    • A. use of coal/coke containing a high % of fines and ash.
    • B. use of fuel having too low an ash fusion temperature.
    • C. development of hot spots in the fuel bed and an abnormally high rate of gasification.
    • D. all (a), (b) and (c).
    • Discuss
    • 7. Heat transfer rate to the stock/charge in the furnace does not depend upon the

    • Options
    • A. emissivity of the refactory walls.
    • B. size of the furance.
    • C. use of waste heat recovery equipments.
    • D. thickness of the stock.
    • Discuss
    • 8. Thermal efficiency of a limestone calcination rotary kiln may be around __________ percent.

    • Options
    • A. 20
    • B. 40
    • C. 65
    • D. 80
    • Discuss
    • 9. Which of the following is a natural draft furnace?

    • Options
    • A. Blast furnace stoves
    • B. Power plant boilers
    • C. Sintering furnace
    • D. None of these
    • Discuss
    • 10. Soaking pits are meant for heating steel

    • Options
    • A. ingots
    • B. coils
    • C. sheets
    • D. slabs
    • Discuss


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