Chemical Engineering - Chemical Engineering Plant Economics

Exercise :: Chemical Engineering Plant Economics - Section 1

31. 

If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be __________ percent.

A. 10
B. 20
C. >20
D. < 20

Answer: Option C

Explanation:

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32. 

Which of the following is a component of working capital investment ?

A. Utilities plants.
B. Maintenance and repair inventory.
C. Process equipments.
D. Depreciation.

Answer: Option B

Explanation:

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33. 

'Six-tenth factor' rule is used for estimating the

A. equipment installation cost.
B. equipment cost by scaling.
C. cost of piping.
D. utilities cost.

Answer: Option B

Explanation:

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34. 

Payback period

A. and economic life of a project are the same.
B. is the length of time over which the earnings on a project equals the investment.
C. is affected by the variation in earnings after the recovery of the investment.
D. all (a), (b) and (c).

Answer: Option B

Explanation:

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35. 

In an ordinary chemical plant, electrical installation cost may be about

A. 10-15% of purchased equipment cost.
B. 3-10% of fixed capital investment.
C. either (a) or (b).
D. neither (a) nor (b).

Answer: Option C

Explanation:

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