Chemical Engineering Plant Economics

81.Which of the following is not a component of the fixed capital for a chemical plant facility?

1. Raw materials inventory
2. Utilities plants
3. Process equipment
4. Emergency facilities

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

1. Product inventory
2. In-process inventory
3. Minimum cash reserve
4. Storage facilities

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83.Which of the following is not a component of working capital?

1. Raw materials is stock
2. Finished products in stock
3. Transportation facilities
4. Semi-finished products in the process

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84.Which of the following is not a current asset of a chemical company?

1. Inventories
2. Marketable securities
3. Chemical equipments
4. None of these

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85.Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant?

1. Cash reserve
2. Rate of return on investment
3. Payout period
4. Discounted cash flow based on full life performance

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86.Which of the following is the costliest material of construction used in pressure vessel construction?

1. Low alloy steel
2. Lead
3. Titanium
4. High alloy steel

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

1. Multiple straight line method
2. Sinking fund method
3. Declining balance method
4. Sum of the years digit method

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88.With increase in the discounted cash flow rate of return, the ratio of the total present value to the initial investment of a given project

1. Decreases
2. Increases
3. Increases linearly
4. Remain constant

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