Chemical Engineering Plant Economics Objective Questions and Answers

43. In which of the electric power generation system, the operating cost is minimum?

44. 'Lang factor' is defined as the ratio of the capital investment to the delivered cost of major equipments. The value of 'Lang factor' for fixed capital investment, for a solid-fluid processing chemical plant ranges from

A. 1.2 to 1.4

45. 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. $${\text{R}}\left[ {\frac{{{{\left( {1 + {\text{i}}} \right)}^{\text{n}}} - 1}}{{\text{i}}}} \right]$$

B. $${\text{R}}\left[ {\frac{{{{\left( {1 + {\text{i}}} \right)}^{\text{n}}} - 1}}{{{\text{i}}{{\left( {1 + {\text{i}}} \right)}^{\text{n}}}}}} \right]$$

C. $${\text{R}}{\left( {1 + {\text{i}}} \right)^{\text{n}}}$$

D. $$\frac{{\text{R}}}{{{{\left( {1 + {\text{i}}} \right)}^{\text{n}}}}}$$

Discussion

46. Pick out the wrong statement.

A. Gross revenue is that total amount of capital received as a result of the sale of goods or service

B. Net revenue is the total profit remaining after deducting all costs excluding taxes

C. The ratio of immediately available cash to the total current liabilities is known as the cash ratio

D. Consolidated income statement based on a given time period indicates surplus capital and shows the relationship among total income, costs & profit over the time interval

Discussion

47. The 'total capital investment' for a chemical process plant comprises of the fixed capital investment and the

A. Overhead cost

B. Working capital

C. Indirect production cost

D. Direct production cost

Discussion

48. Scheduling provides information about the

A. Proper utilisation of machines

B. Means to minimise idle time for machines

C. Time of completion of job

D. Time of starting of job and also about how much work should be completed during a particular period

Discussion

49. Profit is equal to revenue minus

Chemical Engineering Plant Economics MCQs