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  • Question
  • An annuity is a series of equal payments occuring at equal time intervals, and this amount includes the sum of all payments plus interest, if allowed to accumulate at a definite rate of interest from the time of initial payment to the end of annuity term. Ordinary annuity is used in the calculation of the


  • Options
  • A. manufacturing cost.
  • B. depreciation by sinking fund method.
  • C. discrete compound interest.
  • D. cash ratio.

  • Correct Answer
  • depreciation by sinking fund method. 


  • Chemical Engineering Plant Economics problems


    Search Results


    • 1. Which of the following is the cheaptest material of construction for the storage of sodium hydroxide upto a concentration of 75%?

    • Options
    • A. Stainless steel
    • B. Plain carbon steel
    • C. Nickel
    • D. Copper
    • Discuss
    • 2. A shareholder has __________ say in the affairs of company management compared to a debenture holder.

    • Options
    • A. more
    • B. less
    • C. same
    • D. no
    • Discuss
    • 3. In a chemical process plant, the total product cost comprises of manufacturing cost and the

    • Options
    • A. general expenses
    • B. overhead cost
    • C. R & D cost
    • D. none of these
    • Discuss
    • 4. Following the six-tenth factor rule, if a log-log plot of capacity of the equipment vs. cost of the equipment is made, then a straight line is obtained, whose slope is equal to

    • Options
    • A. 0.1
    • B. 0.6
    • C. 0.2
    • D. 0.8
    • Discuss
    • 5. Which of the following ceramic packing materials is the costliest of all?

    • Options
    • A. Berl saddles
    • B. Raschig rings
    • C. Pall rings
    • D. Intalox saddles
    • Discuss
    • 6. Expenditure on research and development (R & D) is categorised as the __________ , while making an estimate of the total product cost for a chemical plant.

    • Options
    • A. overhead cost
    • B. fixed expenses
    • C. general expenses
    • D. direct production cost
    • Discuss
    • 7. Gantt chart (or Bar chart) is helpful in

    • Options
    • A. efficient utilisation of manpower and machines.
    • B. preparing production schedule.
    • C. efficient despatching of products.
    • D. inventory control.
    • Discuss
    • 8. If 'S' is the amount available after 'n' interest periods for an initial principal 'P' with the discrete compound interest rate 'i', the present worth is given by

    • Options
    • A. (1 + i)n/S
    • B. S/(1 + i)n
    • C. S/(1 + in)
    • D. S/(1 + n)i
    • Discuss
    • 9. Optimum number of effects in a multiple effect evaporator is decided by the

    • Options
    • A. cost benefit analysis.
    • B. floor area availability.
    • C. terminal parameters.
    • D. evaporation capacity required.
    • Discuss
    • 10. Maximum production start up cost for making a chemical plant operational is about __________ percent of the fixed capital cost.

    • Options
    • A. 1
    • B. 5
    • C. 10
    • D. 30
    • Discuss


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