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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
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.

50
95
75
30

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Chemical Engineering Plant Economics
The ratio of gross annual sales to the fixed capital investment is termed as the __________ ratio.

Capital
Turnover
Investment
Cash reserve

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Chemical Engineering Plant Economics
Which of the following is not a component of the working capital for a chemical process plant?

Storage facilities
Product inventory
In-process inventory
Minimum cash reserve

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Chemical Engineering Plant Economics
The value of a property decreases __________ with time in straight line method of determining depreciation.

Non-linearily
Linearly
Logarithmically
Exponentially

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Chemical Engineering Plant Economics
Which of the following methods of depreciation calculations results in book values greater than those obtained with straight line method?

Multiple straight line method
Sinking fund method
Sum of the years digit method
Declining balance method

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Chemical Engineering Plant Economics
Nominal and effective interest rates are equal, when the interest is compounded

Quarterly
In no case, they are equal
Annually
Semi-annually

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