Chemical Engineering - Chemical Engineering Plant Economics

Exercise :: Chemical Engineering Plant Economics - Section 2

1. 

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

A.
B.
C. R(1 + i)n
D. R/(1 + i)n

Answer: Option B

Explanation:

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2. 

A shareholder has __________ say in the affairs of company management compared to a debenture holder.

A. more
B. less
C. same
D. no

Answer: Option A

Explanation:

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3. 

Which of the following is not a component of the working capital for a chemical process plant ?

A. Product inventory.
B. In-process inventory.
C. Minimum cash reserve.
D. Storage facilities.

Answer: Option D

Explanation:

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4. 

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: Option D

Explanation:

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5. 

Relative cost of chemical process plants in India is about __________ percent more than the similar plants in U.S.A.

A. 15
B. 35
C. 55
D. 75

Answer: Option B

Explanation:

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