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  • Question
  • Cost of piping in a fluid processing unit (e.g., distillation) of a chemical process plant is about __________ percent of the fixed capital investment.


  • Options
  • A. 4
  • B. 13
  • C. 22
  • D. 34

  • Correct Answer
  • 13 


  • Chemical Engineering Plant Economics problems


    Search Results


    • 1. 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
    • 2. 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
    • 3. 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
    • 4. 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
    • 5. 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
    • 6. The __________ of a chemical company can be obtained directly from the balance sheet as the difference between current assets and current liabilities.

    • Options
    • A. cash ratio
    • B. net working capital
    • C. current ratio
    • D. liquids assets
    • Discuss
    • 7. In financial accounting of a chemical plant, which of the following relationship is invalid?

    • Options
    • A. Assets = equities
    • B. Assets = liabilities + net worth
    • C. Total income = costs + profits
    • D. Assets = capital.
    • Discuss
    • 8. With increase in the discounted cash flow rate of return, the ratio of the total present value to the initial investment of a given project

    • Options
    • A. decreases
    • B. increases
    • C. increases linearly
    • D. remains constant
    • Discuss
    • 9. Effluent treatment cost in a chemical plant is categorised as the __________ cost.

    • Options
    • A. fixed
    • B. overhead
    • C. utilities
    • D. capital
    • Discuss
    • 10. Which of the following is not a current asset of a chemical company?

    • Options
    • A. Inventories
    • B. Marketable securities
    • C. Chemical equipments
    • D. None of these.
    • Discuss


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