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  • Question

  • __________ 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)

  • Correct Answer
  • Sum of the years-digits method 

    • Chemical Engineering Plant Economics problems

    Search Results

    • 1. 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
    • 2. Depreciation is __________ in profit with time.

    • Options
    • A. decrease
    • B. increase
    • C. no change
    • D. none of these
      • Discuss
    • 3. Effective and nominal interest rates are equal, when the interest is compounded

    • Options
    • A. annually
    • B. fortnightly
    • C. monthly
    • D. half-yearly
      • Discuss
    • 4. 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
    • 5. 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
    • 6. 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
    • 7. 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
    • 8. 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
    • 9. Chemical engineering plant cost index is used for finding the present cost of a particular chemical plant, if the cost of similar plant at some time in the past is known.
      The present cost of the plant = original cost   x
      The most major component of this cost index is

    • Options
    • A. fabricated equipment and machinery.
    • B. process instruments and control.
    • C. pumps and compressor.
    • D. electrical equipments and material.
      • Discuss
    • 10. Profit is equal to revenue minus

    • Options
    • A. book value
    • B. total cost
    • C. operating cost
    • D. none of these
      • Discuss

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