Purchased cost of equipments for a chemical process plant ranges from _____________ percent of the fixed capital investment?
Correct answer: B. 20 to 40
- A. 10 to 20
- B. 20 to 40
- C. 45 to 60
- D. 65 to 75
Explanation
Purchased equipment commonly accounts for roughly 20 to 40 percent of fixed capital investment, depending on the type and complexity of the plant. The other ranges are either too low or unrealistically high for the usual cost breakdown.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
Practise Plant Design and Economics
803 free Plant Design and Economics MCQs from Chemical Engineering, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Chemical Engineering questions like this
Chemical Engineering is on this paper prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for it.
More Plant Design and Economics questions
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 ?
A shareholder has ______________ say in the affairs of company management compared to a debenture holder ?
Operating profit of a chemical plant is equal to___________________?
Cost of piping in a fluid processing unit (e.g., distillation) of a chemical process plant is about _____________ percent of the fixed capital investment ?
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?
Fixed charges for a chemical plant does not include the____________________?