Discussion
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- Question
Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant?
Options- A. Cash reserve.
- B. Rate of return on investment.
- C. Payout period.
- D. Discounted cash flow based on full life performance.
- Correct Answer
- Cash reserve.
- 1. Pick out the wrong statement.
Options- A. Gross margin = net income - net expenditure
- B. Net sales realisation (NSR) = Gross sales - selling expenses
- C. At break even point, NSR is more than the total production cost
- D. Net profit = Gross margin - depreciation - interest Discuss
- 2. 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
- 3. Effluent treatment cost in a chemical plant is categorised as the __________ cost.
Options- A. fixed
- B. overhead
- C. utilities
- D. capital Discuss
- 4. 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
- 5. 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
- 6. According to six-tenths-factor rule, if the cost of a given unit at one capacity is known, then the cost of similar unit with '' times the capacity of the first unit is approximately equal to __________ times the cost of the initial unit.
Options- A. n
- B. n0.6
- C. n0.4
- D. n Discuss
- 7. A balance sheet for a chemical plant shows its financial condition at any given date. It does not contain the __________ of the plant.
Options- A. current asset
- B. current liability
- C. long term debt
- D. profit Discuss
- 8. An investment of Rs. 100 lakhs is to be made for construction of a plant, which will take two years to start production. The annual profit from the operation of the plant is Rs. 20 lakhs. What will be the pay back time?
Options- A. 5 years
- B. 7 years
- C. 12 years
- D. 10 years Discuss
- 9. Relative cost of chemical process plants in India is about __________ percent more than the similar plants in U.S.A.
Options- A. 15
- B. 35
- C. 55
- D. 75 Discuss
- 10. Purchased cost of equipments for a chemical process plant ranges from __________ percent of the fixed capital investment.
Options- A. 10 to 20
- B. 20 to 40
- C. 45 to 60
- D. 65 to 75 Discuss
Chemical Engineering Plant Economics problems
Search Results
Correct Answer: At break even point, NSR is more than the total production cost
Correct Answer: Chemical equipments
Correct Answer: utilities
Correct Answer: decreases
Correct Answer: Assets = capital.
Correct Answer: n0.6
Correct Answer: profit
Correct Answer: 7 years
Correct Answer: 35
Correct Answer: 20 to 40
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