Chemical Engineering Plant Economics - Section 1 (6)

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.

41.

__________ of depreciation calculation accounts for the interest on investement.

A.	Straight line method
B.	Declining balance
C.	both (a) and (b)
D.	neither (a) nor (b).

Answer: Option D

Explanation:

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

42.

Which of the following elements is not included in the scope of market analysis ?

A.	Competition from other manufactures.
B.	Product distribution.
C.	Opportunities
D.	Economics

Answer: Option D

Explanation:

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43.

Nominal and effective interest rates are equal, when the interest is compounded

A.	quarterly
B.	semi-annually
C.	annually
D.	in no case, they are equal

Answer: Option C

Explanation:

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44.

The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is

A.	15%
B.	10%
C.	1.5%
D.	150%

Answer: Option C

Explanation:

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45.

__________ method for profitability evaluation of a project does not account for investment cost due to land.

A.	Net present worth
B.	Pay out period
C.	Discounted cash flow
D.	Rate of return on investment

Answer: Option B

Explanation:

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46.

Pick out the wrong statement.

A.	The annual depreciation rate for machinery and equipments in a chemical process plant is about 10% of the fixed capital investment.
B.	Annual depreciation rate of buildings in a chemical plant is about 3% of its initial cost.
C.	Insurance rates on annual basis in a chemical plant may be about 1% of the fixed capital investment.
D.	In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR).

Answer: Option D

Explanation:

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47.

Utilities cost in the operation of chemical process plant comes under the

A.	plant overhead cost
B.	fixed charges
C.	direct production cost
D.	general expenses

Answer: Option C

Explanation:

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48.

The ratio of working capital to total capital investment for most chemical plants (except for non-seasonal based products) is in the range of __________ percent.

A.	0.1 to 1
B.	1 to 2
C.	10 to 20
D.	50 to 60

Answer: Option C

Explanation:

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