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Chemical Engineering Plant Economics MCQ Question with Answer

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

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Question No : 29
'Lang factor' is defined as the ratio of the capital investment to the delivered cost of major equipments. The value of 'Lang factor' for fixed capital investment, for a solid-fluid processing chemical plant ranges from

1.2 to 1.4
2.5 to 2.7
4.2 to 4.4
6.2 to 6.4
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Question No : 30
The depreciation during the year 'n', in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage 'N' to the

Initial cost
Book value at the end of (n - 1)th year
Depreciation during the (n - 1)th year
Difference between initial cost and salvage value
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Question No : 31
Factory manufacturing cost is the sum of the direct production cost

Fixed charges and plant overhead cost
And plant overhead cost
Plant overhead cost and administrative expenses
None of these
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Question No : 32
Optimum economic pipe diameter for fluid is determined by the

Viscosity of the fluid
Density of the fluid
Total cost considerations (pumping cost plus fixed cost of the pipe)
None of these
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Question No : 33
Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant?

Cash reserve
Rate of return on investment
Payout period
Discounted cash flow based on full life performance
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Question No : 34
Annual depreciation costs are constant, when the __________ method of depreciation calculation is used.

Declining balance
Straight line
Sum of the years digit
None of these
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Question No : 35
If an amount R is paid at the end of every year for 'n' years, then the net present value of the annuity at an interest rate of i is

R [{(1 + i)n - 1}/ i ]
R [{(1 + i)n - 1}/ i (1 + i)n]
R(1 + i)n
R/(1 + i)n
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