CHEMICAL ENGINEERING PLANT ECONOMICS QUIZ

The amount of compounded interest during 'n' interest periods is

P(1 - i)n

P[(1+i)n-1)]

P(1 + in)

P(1 + i)n

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Depreciation

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

Does figure in the calculation of income tax liability on cash flows from an investment

All of these

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

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Fixed charges for a chemical plant does not include the

Rent of land and buildings

Repair and maintenance charges

Property tax, insurance and depreciation

Interest on borrowed money

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The economic life of a large chemical process plant as compared to a small chemical plant is

Slightly less

Only slightly more

Much more

Almost equal

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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 x (index value/(index value at original cost was obtained)The most major component of this cost index is

Pumps and compressor

Process instruments and control

Electrical equipments and material

Fabricated equipment and machinery

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Which of the following does not come under the sales expenses for a product of a chemical plant?

Warehousing

Customer service

Legal fees

Advertising

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

Linearly

Exponentially

Non-linearily

Logarithmically

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In a manufacturing industry, break even point occurs, when the

Annual sales equals the fixed cost

Annual profit equals the expected value

Total annual product cost equals the total annual sales

Total annual rate of production equals the assigned value

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For a given fluid, as the pipe diameter increases, the pumping cost

Remains the same

Decreases

May increase or decrease, depending upon whether the fluid is Newtonian or non-Newtonian

Increases

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Total product cost of a chemical plant does not include the __________ cost.

Operating labour, supervision and supplies

Overhead and utilities

Depreciation, property tax and insur-rance

Market survey

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