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.
✅ Correct Answer: (C)
800
Chemical Engineering Plant Economics MCQs | Page - 9
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. Fixed charges for a chemical plant does not include the
✅ Correct Answer: (D)
Repair and maintenance charges
Q. Which of the following is not a component of working capital?
✅ Correct Answer: (C)
Transportation facilities
Q. Functional depreciation of an equipment is the measure of decrease in its value due to its
✅ Correct Answer: (D)
Obsolescence
Q. The value of a property decreases __________ with time in straight line method of determining depreciation.
✅ Correct Answer: (A)
Linearly
Q. The economic life of a large chemical process plant as compared to a small chemical plant is
✅ Correct Answer: (B)
Much more
Q. The amount of compounded interest during 'n' interest periods is
✅ Correct Answer: (A)
p[(1 + i)n - 1]
Q. Which of the following is the costliest source of getting hydrogen on commercial scale for the manufacture of nitrogeneous fertiliser?
✅ Correct Answer: (C)
Alectrolysis of water
Q. 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.
✅ Correct Answer: (C)
10 to 20
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