Chemical Engineering Plant Economics MCQ Questions & Answers

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Learn Chemical Engineering Plant Economics MCQ questions & answers are available for a Chemical Engineering students to clear GATE exams, various technical interview, competitive examination, and another entrance exam. Chemical Engineering Plant Economics MCQ question is the important chapter for a Chemical Engineering and GATE students. Page-4 section-1

Each section contains 100 MCQs on Chemical Engineering Plant Economics .

A machine has an initial value of Rs. 5000, service life of 5 years and final salvage value of Rs. 1000. The annual depreciation cost by straight line method is Rs.

A) 300 B) 600 C) 800 D) 1000

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

Fixed charges for a chemical plant does not include the

A) Interest on borrowed money B) Rent of land and buildings C) Property tax, insurance and depreciation D) Repair and maintenance charges

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

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

A) Raw materials is stock B) Finished products in stock C) Transportation facilities D) Semi-finished products in the process

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

Functional depreciation of an equipment is the measure of decrease in its value due to its

A) Ageing B) Wear and tear C) Obsolescence D) Breakdown or accident

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

The value of a property decreases __________ with time in straight line method of determining depreciation.

A) Linearly B) Non-linearily C) Exponentially D) Logarithmically

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

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

A) Only slightly more B) Much more C) Slightly less D) Almost equal

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

Depreciation

A) Costs (on annual basis) are constant when the straight line method is used for its determination B) Is the unavoidable loss in the value of the plant, equipment and materials with lapse in time C) Does figure in the calculation of income tax liability on cash flows from an investment D) All of the above

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

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

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

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

Which of the following is the costliest source of getting hydrogen on commercial scale for the manufacture of nitrogeneous fertiliser?

A) Coal gasification B) Steam reforming of naphtha C) Alectrolysis of water D) Coke oven gas

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

The ratio of working capital to total capital investment for most chemical plants (except for non-seasonal based products) is in the range of __________ percent.

A) 0.1 to 1 B) 1 to 2 C) 10 to 20 D) 50 to 60

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

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Chemical Engineering Plant Economics MCQ Questions & Answers | Chemical Engineering