Chemical Engineering Plant Economics MCQs | Page - 8

Dear candidates you will find MCQ questions of Chemical Engineering Plant Economics here. Learn these questions and prepare yourself for coming examinations and interviews. You can check the right answer of any question by clicking on any option or by clicking view answer button.

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Ram Sharma • 193.86K Points
Coach

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

(A) Utilities plants
(B) Maintenance and repair inventory
(C) Process equipments
(D) Depreciation
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Ram Sharma • 193.86K Points
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Q. 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
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Ram Sharma • 193.86K Points
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Q. The inventory of raw materials included in the working capital is usually about __________ months supply of raw materials valued at delivery prices.

(A) One
(B) Three
(C) Six
(D) Twelve
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Ram Sharma • 193.86K Points
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Q. 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?

(A) 5 years
(B) 7 years
(C) 12 years
(D) 10 years
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Ram Sharma • 193.86K Points
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Q. 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) 1.5%
(B) 10%
(C) 15%
(D) 150%
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Ram Sharma • 193.86K Points
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Q. For a typical project, the cumulative cash flow is zero at the

(A) End of the project life
(B) Break even point
(C) Start up
(D) End of the design stage
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Ram Sharma • 193.86K Points
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Q. Which of the following methods of depreciation calculations results in book values greater than those obtained with straight line method?

(A) Multiple straight line method
(B) Sinking fund method
(C) Declining balance method
(D) Sum of the years digit method
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Ram Sharma • 193.86K Points
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Q. 'Utilities' in a chemical process plant includes compressed air, steam, water, electrical power, oxygen, acetylene, fuel gases etc. Utility costs for ordinary chemical process plants ranges roughly from __________ percent of the total product cost.

(A) 1 to 5
(B) 10 to 20
(C) 25 to 35
(D) 35 to 45
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Ram Sharma • 193.86K Points
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Q. 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)
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Ram Sharma • 193.86K Points
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Q. Maximum production start up cost for making a chemical plant operational is about __________ percent of the fixed capital cost.

(A) 1
(B) 5
(C) 10
(D) 30
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