Chemical Engineering Plant Economics problems
- 1. 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
Correct Answer: Legal fees
- 2. 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
Correct Answer: working capital
- 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
Correct Answer: Raw materials inventory.
- 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
Correct Answer: break even point.
- 5. Effective and nominal interest rates are equal, when the interest is compounded
Options- A. annually
- B. fortnightly
- C. monthly
- D. half-yearly Discuss
Correct Answer: annually
- 6. Depreciation is __________ in profit with time.
Options- A. decrease
- B. increase
- C. no change
- D. none of these Discuss
Correct Answer: decrease
- 7. 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
Correct Answer: Alectrolysis of water
- 8. __________ 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
Correct Answer: Sum of the years-digits method
- 9. 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
Correct Answer: the financial condition at any given time.
- 10. 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
Correct Answer:
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