Chemical Engineering Plant Economics MCQs | Page - 2

Dear candidates you will find MCQ questions of Chemical Engineering Plant Economics here. Learn these questions and prepare yourself for coming examinations and interviews. You can check the right answer of any question by clicking on any option or by clicking view answer button.

📊 Chemical Engineering Plant Economics
Q. 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
✅ Correct Answer: (C) 800
📊 Chemical Engineering Plant Economics
Q. 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.
  • (A) 40096
  • (B) 43196
  • (C) 53196
  • (D) 60196
💬 Discuss
✅ Correct Answer: (D) 60196
📊 Chemical Engineering Plant Economics
Q. According to six-tenths-factor rule, if the cost of a given unit at one capacity is known, then the cost of similar unit with '' times the capacity of the first unit is approximately equal to _________ times the cost of the initial unit.
  • (A) n
  • (B) n^0.6
  • (C) n^0.4
  • (D) √n
💬 Discuss
✅ Correct Answer: (B) n^0.6
📊 Chemical Engineering Plant Economics
Q. An annuity is a series of equal payments occuring at equal time intervals, and this amount includes the sum of all payments plus interest, if allowed to accumulate at a definite rate of interest from the time of initial payment to the end of annuity term. Ordinary annuity is used in the calculation of the
  • (A) Manufacturing cost
  • (B) Depreciation by sinking fund method
  • (C) Discrete compound interest
  • (D) Cash ratio
💬 Discuss
✅ Correct Answer: (B) Depreciation by sinking fund method
📊 Chemical Engineering Plant Economics
Q. 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 payback time?
  • (A) 5 years
  • (B) 7 years
  • (C) 12 years
  • (D) 10 years
💬 Discuss
✅ Correct Answer: (B) 7 years
📊 Chemical Engineering Plant Economics
Q. An investment of Rs. 1000 is carrying an interest of 10% compounded quarterly. The value of the investment at the end of five years will be
  • (A) 1000 (1 + 0.1/4)^20
  • (B) 1000 (1 + 0.1)^20
  • (C) 1000 (1 + 0.1/4)^5
  • (D) 1000 (1 + 0.1/2)^5
💬 Discuss
✅ Correct Answer: (A) 1000 (1 + 0.1/4)^20

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