9/6/2019 Chemical Engineering Plant Economics MCQ Questions & Answers | Chemical Engineering Page-4 section-1

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Chemical Engineering Plant Economics MCQ Questions & Answers | Chemical Engineering
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16. Direct costs component of the fixed capital consists of

A. Contingencies

B. Onsite and offsite costs

C. Labour costs

D. Raw material costs 

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9/6/2019 Chemical Engineering Plant Economics MCQ Questions & Answers | Chemical Engineering Page-4 section-1

17. Purchased cost of equipments for a chemical process plant ranges from __________ percent of the fixed capital
investment.

A. 10 to 20

B. 20 to 40

C. 45 to 60

D. 65 to 75

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18. Cost of piping in a fluid processing unit (e.g., distillation) of a chemical process plant is about __________ percent
of the fixed capital investment.

A. 4

B. 13

C. 22

D. 34

Answer & Solution

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19. If 'S' is the amount available after 'n' interest periods for an initial principal 'P' with the discrete compound interest
rate 'i', the present worth is given by 

A. (1 + i)n/S

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9/6/2019 Chemical Engineering Plant Economics MCQ Questions & Answers | Chemical Engineering Page-4 section-1

B. S/(1 + i)n

C. S/(1 + in)

D. S/(1 + n)i

Answer & Solution

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20. Equipment installation cost in a chemical process plant ranges from __________ percent of the purchased
equipment cost.

A. 10 to 20

B. 35 to 45

C. 55 to 65

D. 70 to 80

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