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


bProcess instruments and control


cPumps and compressor


dElectrical equipments and material



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


aPresent worth method


bSinking fund method


cSum of the years-digits method


dAll A, B. and C.



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


a10-15% of purchased equipment cost


b3-10% of fixed capital investment


cEither A. or B.


dNeither A. nor B.


View Answer Either A. or B.

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


aRaw materials is stock


bFinished products in stock


cTransportation facilities


dSemi-finished products in the process



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


aEquipment selection


bProduct evaluation


cEquipment design


dCost estimation


View Answer Product evaluation

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


aMarket survey


bOperating labour, supervision and supplies


cOverhead and utilities


dDepreciation, property tax and insurance


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


bS/(1 + i)n


cS/(1 + in)


dS/(1 + n)i


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


bUtilities plants


cProcess equipment


dEmergency facilities



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%


b10%


c1.5%


d150%


View Answer 1.5%

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


aStraight line


bSinking fund


cPresent worth


dDeclining balance


View Answer Declining balance

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