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  • Question
  • 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

  • Correct Answer
  • linearly 


  • Chemical Engineering Plant Economics problems


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    • 1. 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
    • 2. 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
    • 3. 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.
    • Discuss
    • 4. 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
    • 5. 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
    • 6. 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
    • 7. 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
    • 8. 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

    • Options
    • A.
    • B. 1000 (1 + 0.1)20
    • C.
    • D.
    • Discuss
    • 9. Factory manufacturing cost is the sum of the direct production cost

    • Options
    • A. fixed charges and plant overhead cost.
    • B. and plant overhead cost.
    • C. plant overhead cost and administrative expenses.
    • D. none of these.
    • Discuss
    • 10. Total product cost of a chemical plant does not include the __________ cost.

    • Options
    • A. market survey
    • B. operating labour, supervision and supplies
    • C. overhead and utilities
    • D. depreciation, property tax and insur-rance
    • Discuss


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