Q. Effective and nominal interest rates are equal, when the interest is compounded
✅ Correct Answer: (A)
Annually
Chemical Engineering Plant Economics MCQs | Page - 3
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.
Q. Direct costs component of the fixed capital consists of
✅ Correct Answer: (B)
Onsite and offsite costs
Q. Depreciation is _________ in profit with time.
✅ Correct Answer: (A)
Decrease
Q. Depreciation
✅ Correct Answer: (D)
All (A), (B) and (C)
Q. Cost of piping in a fluid processing unit (e.g., distillation) of a chemical process plant is about _________ percent of the fixed capital investment.
✅ Correct Answer: (B)
13
Q. Cost of instrumentation in a modern chemical plant ranges from _________ percent of the total plant cost.
✅ Correct Answer: (B)
20 to 30
Q. Construction expenses are roughly _________ percent of the total direct cost of the plant.
✅ Correct Answer: (B)
10
Q. Chemical engineering plant cost index is used for finding the present cost of a particular chemical plant, if the cost of similar plant at some time in the past is known. The present cost of the plant = original cost × (index value at present/ index value at time original cost was obtained). The most major component of this cost index is
✅ Correct Answer: (A)
Fabricated equipment and machinery
Q. Annual depreciation costs are constant, when the _________ method of depreciation calculation is used.
✅ Correct Answer: (B)
Straight line
Q. Annual depreciation cost are not constant when, the _________ method of depreciation calculation is used.
✅ Correct Answer: (D)
Declining balance
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