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Chemical Engineering Plant Economics MCQs | Page - 9

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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Q. 81) A machine has an initial value of Rs. 5000, service life of 5 years and final salvage value of Rs. 1000. The annual depreciation cost by straight line method is Rs.

(A) 300

(B) 600

(D) 1000

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Q. 82) Fixed charges for a chemical plant does not include the

(A) Interest on borrowed money

(B) Rent of land and buildings

(D) Repair and maintenance charges

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Q. 83) Which of the following is not a component of working capital?

(A) Raw materials is stock

(B) Finished products in stock

(D) Semi-finished products in the process

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Q. 84) Functional depreciation of an equipment is the measure of decrease in its value due to its

(A) Wear and tear

(B) Ageing

(D) Obsolescence

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Q. 85) The value of a property decreases __________ with time in straight line method of determining depreciation.

(A) Linearly

(B) Non-linearily

(D) Logarithmically

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Q. 86) The economic life of a large chemical process plant as compared to a small chemical plant is

(A) Only slightly more

(B) Much more

(D) Almost equal

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Q. 87) Depreciation

(A) Costs (on annual basis) are constant when the straight line method is used for its determination

(B) Is the unavoidable loss in the value of the plant, equipment and materials with lapse in time

(D) All of the above

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Q. 88) The amount of compounded interest during 'n' interest periods is

(A) p[(1 + i)ⁿ - 1]

(B) p(1 + i)ⁿ

(D) p(1 + iⁿ)

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Q. 89) Which of the following is the costliest source of getting hydrogen on commercial scale for the manufacture of nitrogeneous fertiliser?

(A) Coal gasification

(B) Steam reforming of naphtha

(D) Coke oven gas

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Q. 90) 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

(D) 50 to 60

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