Fixed capital investment of a chemical plant is the total amount of money needed to supply the necessary plant and manufacturing facilities plus the working capital for operation of the facilities. Which of the following components of fixed capital investment requires minimum percentage of it ?

Related Mcqs:

1. Most chemical plants use an initial working capital amounting to 10-20% of the total capital investment. But this percentage may increase to ______________ percent in case of seasonal products manufacturing plant?

   A. 30
   B. 50
   C. 75
   D. 95

2. 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

3. ‘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

4. 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

5. The ratio of working capital to total capital investment for most chemical plants (except for non-seasonal based products) is in the range of _____________ percent ?

   A. 0.1 to 1
   B. 1 to 2
   C. 10 to 20
   D. 50 to 60

6. Cost of piping in a fluid processing unit (e.g., distillation) of a chemical process plant is about _____________ percent of the fixed capital investment ?

   A. 4
   B. 13
   C. 22
   D. 34

7. Purchased cost of equipments for a chemical process plant ranges from _____________ percent of the fixed capital investment?

   A. 10 to 20
   B. 20 to 40
   C. 45 to 60
   D. 65 to 75

8. 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

9. 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

10. The economic life of a large chemical process plant as compared to a small chemical plant is_______________?

    A. Only slightly more
    B. Much more
    C. Slightly less
    D. Almost equal