Chemical Engineering Plant Economics

61.Purchased cost of equipments for a chemical process plant ranges from _________ percent of the fixed capital investment.

1. 10 to 20
2. 20 to 40
3. 45 to 60
4. 65 to 75

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

1. 15
2. 35
3. 55
4. 75

63.Scheduling provides information about the

1. Proper utilisation of machines
2. Means to minimise idle time for machines
3. Time of completion of job
4. Time of starting of job and also about how much work should be completed during a particular period

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

1. Overhead cost
2. Working capital
3. Indirect production cost
4. Direct production cost

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

1. Cash ratio
2. Net working capital
3. Current ratio
4. Liquids assets

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

1. p[(1+i)ⁿ - 1)]
2. p(1 + i)ⁿ
3. p(1 - i)ⁿ
4. p(1 + iⁿ)

67.The amount of simple interest during 'n' interest period is (where, i = interest rate based on the length of one interest period, p = principal)

1. p.i.n.
2. p(1 + i.n)
3. p(1 + i)n
4. p(1 - i.n)

68.The depreciation during the year 'n', in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage 'N' to the

1. Initial cost
2. Book value at the end of (n - 1)th year
3. Depreciation during the (n - 1)th year
4. Difference between initial cost and salvage value

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

1. Only slightly more
2. Much more
3. Slightly less
4. Almost equal

70.The inventory of raw materials included in the working capital is usually about _________ month‟s supply of raw materials valued at delivery prices.

1. One
2. Three
3. Six
4. Twelve