Related Mcqs:

1. 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

2. 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

3. ‘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

4. 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

5. 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

6. ‘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

7. If ‘S’ is the amount available after ‘n’ interest periods for an initial principal ‘P’ with the discrete compound interest rate ‘i’, the present worth is given by__________________?

   A. (1 + i)n/S
   B. S/(1 + i)n
   C. S/(1 + in)
   D. S/(1 + n)i

8. With increase in the discounted cash flow rate of return, the ratio of the total present value to the initial investment of a given project ?

   A. Decreases
   B. Increases
   C. Increases linearly
   D. Remain constant

9. 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

10. 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