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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
Which of the following is not a current asset of a chemical company?

Chemical equipments
Inventories
None of these
Marketable securities

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Chemical Engineering Plant Economics
Functional depreciation of an equipment is the measure of decrease in its value due to its

Obsolescence
Breakdown or accident
Wear and tear
Ageing

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Chemical Engineering Plant Economics
An investment of Rs. 1000 is carrying an interest of 10% compounded quarterly. The value of the investment at the end of five years will be

1000 (1 + 0.1/4)5
1000 (1 + 0.1/2)5
1000 (1 + 0.1)20
1000 (1 + 0.1/4)20

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Chemical Engineering Plant Economics
Construction expenses are roughly __________ percent of the total direct cost of the plant.

50
2
10
30

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Chemical Engineering Plant Economics
Out of the following, the depreciation calculated by the __________ method is the maximum.

Sinking fund
Sum of the years digit
Diminishing balance
Straight line

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Chemical Engineering Plant Economics
In an ordinary chemical plant, electrical installation cost may be about

3-10% of fixed capital investment
Either A or B
10-15% of purchased equipment cost
Neither A nor B

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