The 'total capital investment' for a chemical process plant comprises of the fixed capital investment and the_________________?
Correct answer: B. Working capital
- A. Overhead cost
- B. Working capital
- C. Indirect production cost
- D. Direct production cost
Explanation
Total capital investment has two main parts: fixed capital investment for land, equipment and facilities, and working capital for inventories, cash and day-to-day operation. It is therefore the sum of fixed and working capital.
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
Which of the following is the costliest material of construction used in pressure vessel construction ?
_____________ method for profitability evaluation of a project does not account for investment cost due to land ?
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?
An investment of Rs. 1000 is carrying an interest of 10% compounded quarterly. The value of the investment at the end of five years will be ________________?
Nominal and effective interest rates are equal, when the interest is compounded______________?
_________________ of depreciation calculation accounts for the interest on investment?