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_________________?

Related Mcqs:

1. According to six-tenths-factor rule, if the cost of a given unit at one capacity is known, then the cost of similar unit with ” times the capacity of the first unit is approximately equal to _____________ times the cost of the initial unit?

   A. n
   B. n0.6
   C. n0.4
   D. √n

2. ‘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

3. Chemical engineering plant cost index is used for finding the present cost of a particular chemical plant, if the cost of similar plant at some time in the past is known. The present cost of the plant = original cost × (index value at present/ index value at time original cost was obtained). The most major component of this cost index is____________________?

   A. Fabricated equipment and machinery
   B. Process instruments and control
   C. Pumps and compressor
   D. Electrical equipments and material

4. Which of the following methods of depreciation calculations results in book values greater than those obtained with straight line method ?

   A. Multiple straight line method
   B. Sinking fund method
   C. Declining balance method
   D. Sum of the years digit method

5. Equipment installation cost in a chemical process plant ranges from _______________ percent of the purchased equipment cost ?

   A. 10 to 20
   B. 35 to 45
   C. 55 to 65
   D. 70 to 80

6. A machine has an initial value of Rs. 5000, service life of 5 years and final salvage value of Rs. 1000. The annual depreciation cost by straight line method is Rs______________?

   A. 300
   B. 600
   C. 800
   D. 1000

7. ‘P’ is the investment made on an equipment, ‘S’ is its salvage value and ‘n is the life of the equipment in years. The depreciation for Rath year by the sum-of year‟s digit method will be____________________?

   A. (P – S)/n
   B. 1 – (P/S)1/m
   C. (m/n) (P – S)
   D. [2 (n – m + 1)/n(n + 1)]. (P – S)

8. ‘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
   B. 2.5 to 2.7
   C. 4.2 to 4.4
   D. 6.2 to 6.4

9. A series of equal payments (e.g., deposit or cost) made at equal intervals of time is known as __________________?

   A. Perpetuity
   B. Capital charge factor
   C. Annuity
   D. Future worth

10. An annuity is a series of equal payments occuring at equal time intervals, and this amount includes the sum of all payments plus interest, if allowed to accumulate at a definite rate of interest from the time of initial payment to the end of annuity term. Ordinary annuity is used in the calculation of the__________________?

    A. Manufacturing cost
    B. Depreciation by sinking fund method
    C. Discrete compound interest
    D. Cash ratio