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  • Question
  • 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?


  • Options
  • A. Electrical installation cost.
  • B. Equipment installation cost.
  • C. Cost for piping.
  • D. Equipment insulation cost.

  • Correct Answer
  • Equipment insulation cost. 


  • Chemical Engineering Plant Economics problems


    Search Results


    • 1. The amount of compounded interest during 'n' interest periods is

    • Options
    • A. p[(1+i)n-1)]
    • B. p(1 + i)n
    • C. p(1 - i)n
    • D. p(1 + in)
    • Discuss
    • 2. 0n-off control which is a special case of proportional control, has a band width of about __________ percent.

    • Options
    • A. 100
    • B. 75
    • C. 25
    • D. 0
    • Discuss
    • 3. For measuring the temperature of a red hot furnace, which is the most suitable instrument?

    • Options
    • A. Platinum resistance thermometer
    • B. Thermocouple
    • C. Optical pyrometer
    • D. Bimetallic thermometer
    • Discuss
    • 4. Pick out the wrong statement.

    • Options
    • A. There is no transfer lag for a single first order system.
    • B. Stirred tank with a water jacket exemplifies an interacting system.
    • C. Transfer lag is a characteristics of all higher order systems (other than first order systems).
    • D. Transfer lag decreases as the number of stages decreases.
    • Discuss
    • 5. In Bode plot, ? vs ? is plotted on a/an __________ graph paper.

    • Options
    • A. log-log
    • B. ordinary
    • C. semi-log
    • D. triangular
    • Discuss
    • 6. Optimum economic pipe diameter for fluid is determined by the

    • Options
    • A. viscosity of the fluid.
    • B. density of the fluid.
    • C. total cost considerations (pumping cost plus fixed cost of the pipe).
    • D. none of these.
    • Discuss
    • 7. 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.

    • Options
    • A. 40096
    • B. 43196
    • C. 53196
    • D. 60196
    • Discuss
    • 8. The value of a property decreases __________ with time in straight line method of determining depreciation.

    • Options
    • A. linearly
    • B. non-linearily
    • C. exponentially
    • D. logarithmically
    • Discuss
    • 9. A present sum of Rs. 100 at the end of one year, with half yearly rate of interest at 10%, will be Rs.

    • Options
    • A. 121
    • B. 110
    • C. 97
    • D. 91
    • Discuss
    • 10. The amount of simple interest during 'n' interest period is (where, i = interest rate based on the length of one interest period, p = principal)

    • Options
    • A. p.i.n.
    • B. p(1 + i.n)
    • C. p(1 + i)n
    • D. p(1 - i.n)
    • Discuss


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