Plant-Economics Mcqs for Chemical - Set 2

1)   An investment of Rs. 100 lakhs is to be made for construction of a plant, which will take two years to start production. The annual profit from the operation of the plant is Rs. 20 lakhs. What will be the payback time ?

a. 5 years
b. 7 years
c. 12 years
d. 10 years
Answer  Explanation 

ANSWER: 7 years

Explanation:
No explanation is available for this question!


2)   Optimum number of effects in a multiple effect evaporator is decided by the____________________?

a. Cost benefit analysis
b. Floor area availability
c. Terminal parameters
d. Evaporation capacity required
Answer  Explanation 

ANSWER: Cost benefit analysis

Explanation:
No explanation is available for this question!


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  Explanation 

ANSWER: Storage facilities

Explanation:
No explanation is available for this question!


4)   Following the six-tenth factor rule, if a log-log plot of capacity of the equipment vs. cost of the equipment is made, then a straight line is obtained, whose slope is equal to_________________?

a. 0.1
b. 0.6
c. 0.2
d. 0.8
Answer  Explanation 

ANSWER: 0.6

Explanation:
No explanation is available for this question!


5)   Optimum economic pipe diameter for fluid is determined by the___________________?

a. Viscosity of the fluid
b. Density of the fluid
c. Total cost considerations (pumping cost plus fixed cost of the pipe)
d. None of these
Answer  Explanation 

ANSWER: Total cost considerations (pumping cost plus fixed cost of the pipe)

Explanation:
No explanation is available for this question!


6)   Construction expenses are roughly _____________ percent of the total direct cost of the plant ?

a. 2
b. 10
c. 30
d. 50
Answer  Explanation 

ANSWER: 10

Explanation:
No explanation is available for this question!


7)   For a given fluid, as the pipe diameter increases, the pumping cost ______________________?

a. Decreases
b. Increases
c. Remains the same
d. May increase or decrease, depending upon whether the fluid is Newtonian or non-Newtonian
Answer  Explanation 

ANSWER: Decreases

Explanation:
No explanation is available for this question!


8)   ‘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  Explanation 

ANSWER: 10 to 20

Explanation:
No explanation is available for this question!


9)   Generally, income taxes are based on the____________________?

a. Total income
b. Gross earning
c. Total product cost
d. Fixed cost
Answer  Explanation 

ANSWER: Gross earning

Explanation:
No explanation is available for this question!


10)   The ratio of gross annual sales to the fixed capital investment is termed as the ________________ ratio?

a. Cash reserve
b. Capital
c. Turnover
d. Investment
Answer  Explanation 

ANSWER: Turnover

Explanation:
No explanation is available for this question!