Chemical Engineering MCQs

Page No. 756

Chemical engineering plant cost index is used for finding the present cost of a particular chemical plant, if the cost of similar plant at some time in the past is known. The present cost of the plant = original cost × (index value at present/ index value at time original cost was obtained). The most major component of this cost index is____________________?


aFabricated equipment and machinery

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bProcess instruments and control

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cPumps and compressor

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dElectrical equipments and material

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________________ of depreciation calculation does not take into account the interest on investments?


aPresent worth method

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bSinking fund method

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cSum of the years-digits method

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dAll A, B. and C.

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In an ordinary chemical plant, electrical installation cost may be about ____________________?


a10-15% of purchased equipment cost

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b3-10% of fixed capital investment

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cEither A. or B.

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dNeither A. nor B.

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View Answer Either A. or B.

Which of the following is not a component of working capital ?


aRaw materials is stock

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bFinished products in stock

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cTransportation facilities

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dSemi-finished products in the process

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Personnel working in the market research group is responsible for the job of__________________?


aEquipment selection

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bProduct evaluation

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cEquipment design

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dCost estimation

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View Answer Product evaluation

Total product cost of a chemical plant does not include the ______________ cost?


aMarket survey

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bOperating labour, supervision and supplies

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cOverhead and utilities

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dDepreciation, property tax and insurance

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View Answer Market survey

If ‘S’ is the amount available after ‘n’ interest periods for an initial principal ‘P’ with the discrete compound interest rate ‘i’, the present worth is given by__________________?


a(1 + i)n/S

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bS/(1 + i)n

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cS/(1 + in)

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dS/(1 + n)i

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View Answer S/(1 + i)n

Which of the following is not a component of the fixed capital for a chemical plant facility ?


aRaw materials inventory

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bUtilities plants

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cProcess equipment

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dEmergency facilities

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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__________________?


a15%

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b10%

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c1.5%

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d150%

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View Answer 1.5%

Annual depreciation cost are not constant when, the _____________ method of depreciation calculation is used ?


aStraight line

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bSinking fund

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cPresent worth

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dDeclining balance

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View Answer Declining balance

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