1000+ Chemical Engineering Plant Economics Objective Questions Pdf - 2

Question: 6

The ratio of annual net cash flow to capital cost is called

(A) Discount factor

(B) Net present value (NPV)

(C) Return on investment (ROI)

(D) Internal rate of return (IRR)

Question: 7

Direct costs component of the fixed capital consist of

(A) raw material costs

(B) labour costs

(C) contingencies

(D) onsite and offsite costs

Question: 8

Depreciation must be based on the period and amount of use of the equipment. Which method of depreciation calculation takes the time value of money into account?

(A) declining balanced method

(B) sinking fund method

(C) sum of years digits method

(D) straight line method

Question: 9

Which of the following is the costliest source of getting hydrogen on commercial scale for the manufacture of nitrogenous fertilizer?

(A) coke oven gas

(B) electrolysis of water

(C) steam reforming of naphtha

(D) coal gasification

Question: 10

Which of the following elements is not included in the scope of market analysis?

(A) competition from other manufactures

(B) economics

(C) opportunities

(D) product distribution