Chemical Engineering Plant Economics - Section 1 (3)

Directions to Solve

Chemical Engineering Plant Economics - Section 1

This is engineering branch and if you want to
test your aptitude ability in this field then you can solve the given MCQs based on this field.

17.

Payback period

A.	and economic life of a project are the same.
B.	is the length of time over which the earnings on a project equals the investment.
C.	is affected by the variation in earnings after the recovery of the investment.
D.	all (a), (b) and (c).

Answer: Option B

Explanation:

No answer description available for this question. Let us discuss.

18.

'Six-tenth factor' rule is used for estimating the

A.	equipment installation cost.
B.	equipment cost by scaling.
C.	cost of piping.
D.	utilities cost.

Answer: Option B

Explanation:

No answer description available for this question. Let us discuss.

19.

Which of the following is a component of working capital investment ?

A.	Utilities plants.
B.	Maintenance and repair inventory.
C.	Process equipments.
D.	Depreciation.

Answer: Option B

Explanation:

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20.

If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be __________ percent.

A.	10
B.	20
C.	>20
D.	< 20

Answer: Option C

Explanation:

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21.

Pick out the wrong statement.

A.	Net worth means paid up share capital and reserve & surplus (i.e. shareholders equity).
B.	Return on equity = profit after tax/net worth.
C.	Working capital turn over ratio = sales/net working capital.
D.	Total cost of production is more than net sales realisation (NSR) at break even point.

Answer: Option D

Explanation:

No answer description available for this question. Let us discuss.

22.

__________ taxes are based on gross earnings.

A.	Property
B.	Excise
C.	Income
D.	Capital gain

Answer: Option C

Explanation:

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23.

Cost of instrumentation in a modern chemical plant ranges from __________ percent of the total plant cost.

A.	5 to 10
B.	20 to 30
C.	40 to 50
D.	60 to 70

Answer: Option B

Explanation:

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24.

The economic life of a large chemical process plant as compared to a small chemical plant is

A.	only slightly more
B.	much more
C.	slightly less
D.	almost equal

Answer: Option B

Explanation:

No answer description available for this question. Let us discuss.

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