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  • Question
  • Depreciation is __________ in profit with time.


  • Options
  • A. decrease
  • B. increase
  • C. no change
  • D. none of these

  • Correct Answer
  • decrease 


  • Chemical Engineering Plant Economics problems


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    • 1. Effective and nominal interest rates are equal, when the interest is compounded

    • Options
    • A. annually
    • B. fortnightly
    • C. monthly
    • D. half-yearly
    • Discuss
    • 2. 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.
    • Discuss
    • 3. 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
    • 4. 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
    • 5. 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
    • 6. 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
    • Discuss
    • 7. __________ 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)
    • Discuss
    • 8. 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.
    • Discuss
    • 9. If an amount R is paid at the end of every year for 'n' years, then the net present value of the annuity at an interest rate of i is

    • Options
    • A.
    • B.
    • C. R(1 + i)n
    • D. R/(1 + i)n
    • Discuss
    • 10. The ratio of gross annual sales to the fixed capital investment is termed as the __________ ratio.

    • Options
    • A. cash reserve
    • B. capital
    • C. turnover
    • D. investment
    • Discuss


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