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
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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
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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
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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
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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
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6) Construction expenses are roughly _____________ percent of the total direct cost of the plant ? a. 2 b. 10 c. 30 d. 50
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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
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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
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9) Generally, income taxes are based on the____________________? a. Total income b. Gross earning c. Total product cost d. Fixed cost
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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
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