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  • Question
  • 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. An investment of Rs. 1000 is carrying an interest of 10% compounded quarterly. The value of the inve
  • B. 1000 (1 + 0.1)20
  • C. An investment of Rs. 1000 is carrying an interest of 10% compounded quarterly. The value of the inve
  • D. An investment of Rs. 1000 is carrying an interest of 10% compounded quarterly. The value of the inve

  • Correct Answer
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  • Chemical Engineering Plant Economics problems


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    • 1. 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
    • 2. 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
    • 3. 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
    • 4. 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
    • 5. 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
    • 6. 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
    • 7. 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
    • 8. Which of the following does not come under the sales expenses for a product of a chemical plant?

    • Options
    • A. Advertising
    • B. Warehousing
    • C. Legal fees
    • D. Customer service.
    • Discuss
    • 9. The 'total capital investment' for a chemical process plant comprises of the fixed capital investment and the

    • Options
    • A. overhead cost
    • B. working capital
    • C. indirect production cost
    • D. direct production cost
    • Discuss
    • 10. Which of the following is not a component of the fixed capital for a chemical plant facility?

    • Options
    • A. Raw materials inventory.
    • B. Utilities plants.
    • C. Process equipment.
    • D. Emergency facilities.
    • Discuss


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