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Chemical Engineering :: Chemical Engineering Plant Economics

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

  2. A.
    p[(1+i)n-1)]
    B.
    p(1 + i)n
    C.
    p(1 - i)n
    D.
    p(1 + in)

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  3. The __________ of a chemical company can be obtained directly from the balance sheet as the difference between current assets and current liabilities.

  4. A.
    cash ratio
    B.
    net working capital
    C.
    current ratio
    D.
    liquids assets

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  5. Which of the following ceramic packing materials is the costliest of all ?

  6. A.
    Berl saddles
    B.
    Raschig rings
    C.
    Pall rings
    D.
    Intalox saddles

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  7. Manufacturing cost in a chemical company does not include the

  8. A.
    fixed charges.
    B.
    plant overheads.
    C.
    direct products cost.
    D.
    administrative expenses.

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  9. Expenditure on research and development (R & D) is categorised as the __________ , while making an estimate of the total product cost for a chemical plant.

  10. A.
    overhead cost
    B.
    fixed expenses
    C.
    general expenses
    D.
    direct production cost

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  11. For a typical project, the cumulative cash flow is zero at the

  12. A.
    end of the project life.
    B.
    break even point.
    C.
    start up.
    D.
    end of the design stage.

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  13. An investment of Rs. 100 lakhs is to be made for construction of a plant, which will take two years to start production. The annual profit from the operation of the plant is Rs. 20 lakhs. What will be the pay back time ?

  14. A.
    5 years
    B.
    7 years
    C.
    12 years
    D.
    10 years

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  15. 'Lang factor' is defined as the ratio of the capital investment to the delivered cost of major equipments. The value of 'Lang factor' for fixed capital investment, for a solid-fluid processing chemical plant ranges from

  16. A.
    1.2 to 1.4
    B.
    2.5 to 2.7
    C.
    4.2 to 4.4
    D.
    6.2 to 6.4

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  17. A balance sheet for a chemical plant shows its financial condition at any given date. It does not contain the __________ of the plant.

  18. A.
    current asset
    B.
    current liability
    C.
    long term debt
    D.
    profit

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  19. The 'total capital investment' for a chemical process plant comprises of the fixed capital investment and the

  20. A.
    overhead cost
    B.
    working capital
    C.
    indirect production cost
    D.
    direct production cost

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