9/6/2019 Chemical Engineering Plant Economics MCQ Questions & Answers | Chemical Engineering Page-8 section-1

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Chemical Engineering Plant Economics MCQ Questions & Answers | Chemical Engineering
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Section 2 (https://www.examveda.com/chemical-engineering/practice-mcq-question-on-chemical-engineering-plant-economics/?section=2)

36. The economic life of a large chemical process plant as compared to a small chemical plant is

A. Only slightly more

B. Much more

C. Slightly less

D. Almost equal

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9/6/2019 Chemical Engineering Plant Economics MCQ Questions & Answers | Chemical Engineering Page-8 section-1

37. Depreciation

A. Costs (on annual basis) are constant when the straight line method is used for its determination

B. Is the unavoidable loss in the value of the plant, equipment and materials with lapse in time

C. Does figure in the calculation of income tax liability on cash flows from an investment

D. All of the above

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38. The amount of compounded interest during 'n' interest periods is

A. P[(1+i)n-1)]

B. P(1 + i)n

C. P(1 - i)n

D. P(1 + in)

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39. Which of the following is the costliest source of getting hydrogen on commercial scale for the manufacture of
nitrogeneous fertiliser?

A. Coal gasification

B. Steam reforming of naphtha

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C. Alectrolysis of water

D. Coke oven gas

Answer & Solution

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40. 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.

A. 0.1 to 1

B. 1 to 2

C. 10 to 20

D. 50 to 60

Answer & Solution

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