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Chemical Engineering Plant Economics
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Question
For a typical project, the cumulative cash flow is zero at the
Options
A. end of the project life.
B. break even point.
C. start up.
D. end of the design stage.
Correct Answer
break even point.
Chemical Engineering Plant Economics problems
Search Results
1. 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.
Show Answer
Scratch Pad
Discuss
Correct Answer: Raw materials inventory.
2. 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
Show Answer
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Discuss
Correct Answer: working capital
3. 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.
Show Answer
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Discuss
Correct Answer: Legal fees
4. 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
Show Answer
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Discuss
Correct Answer: market survey
5. 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.
Show Answer
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Discuss
Correct Answer: fixed charges and plant overhead cost.
6. Effective and nominal interest rates are equal, when the interest is compounded
Options
A. annually
B. fortnightly
C. monthly
D. half-yearly
Show Answer
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Discuss
Correct Answer: annually
7. Depreciation is __________ in profit with time.
Options
A. decrease
B. increase
C. no change
D. none of these
Show Answer
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Discuss
Correct Answer: decrease
8. Which of the following is the costliest source of getting hydrogen on commercial scale for the manufacture of nitrogeneous fertiliser?
Options
A. Coal gasification
B. Steam reforming of naphtha
C. Alectrolysis of water
D. Coke oven gas
Show Answer
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Discuss
Correct Answer: Alectrolysis of water
9. __________ of depreciation calculation does not take into account the interest on investments.
Options
A. Present worth method
B. Sinking fund method
C. Sum of the years-digits method
D. all (a), (b) and (c)
Show Answer
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Discuss
Correct Answer: Sum of the years-digits method
10. A balance sheet for an industrial concern shows
Options
A. the financial condition at any given time.
B. only current assets.
C. only fixed assets.
D. only current and fixed assets.
Show Answer
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Discuss
Correct Answer: the financial condition at any given time.
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