Home

Chemical Engineering Plant Economics MCQ - Multiple Choice Question and Answer

Chemical Engineering Plant Economics MCQ with detailed explanation for interview, entrance and competitive exams. Explanation are given for understanding.

Download Objective type questions of Chemical Engineering Plant Economics PDF

Visit our PDF store

Question No : 1
For a typical project, the cumulative cash flow is zero at the

End of the project life
Breakeven point
Start up
End of the design stage

Question No : 2
A present sum of Rs. 100 at the end of one year, with half yearly rate of interest at 10%, will be Rs.

121
110
97
91

Question No : 3
The inventory of raw materials included in the working capital is usually about __________ months supply of raw materials valued at delivery prices.

One
Three
Six
Twelve

Question No : 4
Pick out the wrong statement.

Longer tubes are less expensive per unit heat transfer area as compared to shorter tubes
A cost index is merely a number for a given year showing the cost at that time relative to a certain base year
Turnover ratio of a chemical plant is the ratio of gross annual sales to the fixed capital investment
Plates with butt welded joints are less expensive compared to lap welded joints, because squaring of plates is not necessary

Question No : 5
The amount of simple interest during 'n' interest period is (where, i = interest rate based on the length of one interest period, p = principal)

p.i.n.
p(1 + i.n)
p(1 + i)n
p(1 - i.n)

Question No : 6
Depreciation

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

Question No : 7
Payback period

And economic life of a project are the same
Is the length of time over which the earnings on a project equals the investment
Is affected by the variation in earnings after the recovery of the investment
All (A), (B) and (C)