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

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Chemical Engineering Plant Economics MCQ Questions & Answers | Chemical Engineering
Home (https://www.examveda.com/) / Chemical Engineering (https://www.examveda.com/mcq-question-on-chemical-engineering/) / Chemical Engineering Plant Economics

Section 1 (https://www.examveda.com/chemical-engineering/practice-mcq-question-on-chemical-engineering-plant-economics/?section=1)

Section 2 (https://www.examveda.com/chemical-engineering/practice-mcq-question-on-chemical-engineering-plant-economics/?section=2)

41. Which of the following methods of depreciation calculations results in book values greater than those obtained
with straight line method?

A. Multiple straight line method

B. Sinking fund method

C. Declining balance method


D. Sum of the years digit method

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Answer & Solution

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42. Maximum production start up cost for making a chemical plant operational is about __________ percent of the
fixed capital cost.

A. 1

B. 5

C. 10

D. 30

Answer & Solution Discuss in Board (https://www.examveda.com/maximum-production-start-up-cost-for-making-a-chemical-plant-operational-is-about-percent-of-the-fixed-capital-cost-65921)

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43. 'Utilities' in a chemical process plant includes compressed air, steam, water, electrical power, oxygen, acetylene,
fuel gases etc. Utility costs for ordinary chemical process plants ranges roughly from __________ percent of the
total product cost.

A. 1 to 5

B. 10 to 20

C. 25 to 35

D. 35 to 45

Answer & Solution

Discuss in Board (https://www.examveda.com/utilities-in-a-chemical-process-plant-includes-compressed-air-steam-water-electrical-power-oxygen-acetylene-fuel-gases-etc-utility-costs-for-ordinary-

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

44. Pick out the wrong statement.

A. The annual depreciation rate for machinery and equipments in a chemical process plant is about 10% of the fixed capital
investment

B. Annual depreciation rate of buildings in a chemical plant is about 3% of its initial cost

C. Insurance rates on annual basis in a chemical plant may be about 1% of the fixed capital investment

D. In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR)

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45. A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual interest
rate is 10%. The original cost of the reactor was Rs. 80000. The book value of the reactor after 5 years using
sinking fund depreciation method will be Rs.

A. 40096

B. 43196

C. 53196

D. 60196

Answer & Solution

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Read More Section(Chemical Engineering Plant Economics)

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Chemical Engineering Plant Economics - Section 2 (https://www.examveda.com/chemical-engineering/practice-mcq-question-on-chemical-engineering-

plant-economics/?section=2)

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