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Chemical Engineering :: Chemical Engineering Plant Economics

  1. If an amount R is paid at the end of every year for 'n' years, then the net present value of the annuity at an interest rate of i is

  2. A.
    B.
    C.
    R(1 + i)n
    D.
    R/(1 + i)n

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  3. A shareholder has __________ say in the affairs of company management compared to a debenture holder.

  4. A.
    more
    B.
    less
    C.
    same
    D.
    no

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  5. Which of the following is not a component of the working capital for a chemical process plant ?

  6. A.
    Product inventory.
    B.
    In-process inventory.
    C.
    Minimum cash reserve.
    D.
    Storage facilities.

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  7. A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual interest rate is 10%. The original cost of the reactor was Rs. 80000. The book value of the reactor after 5 years using sinking fund depreciation method will be Rs.

  8. A.
    40096
    B.
    43196
    C.
    53196
    D.
    60196

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  9. Relative cost of chemical process plants in India is about __________ percent more than the similar plants in U.S.A.

  10. A.
    15
    B.
    35
    C.
    55
    D.
    75

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  11. Which of the following methods of depreciation calculations results in book values greater than those obtained with straight line method ?

  12. A.
    Multiple straight line method
    B.
    Sinking fund method
    C.
    Declining balance method
    D.
    Sum of the years digit method

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

  14. A.
    market survey
    B.
    operating labour, supervision and supplies
    C.
    overhead and utilities
    D.
    depreciation, property tax and insur-rance

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  15. Depreciation is __________ in profit with time.

  16. A.
    decrease
    B.
    increase
    C.
    no change
    D.
    none of these

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  17. Gantt chart (or Bar chart) is helpful in

  18. A.
    efficient utilisation of manpower and machines.
    B.
    preparing production schedule.
    C.
    efficient despatching of products.
    D.
    inventory control.

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  19. Profit is equal to revenue minus

  20. A.
    book value
    B.
    total cost
    C.
    operating cost
    D.
    none of these

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