Review Activity on PLANT DESIGN and ECONOMICS FOR CHEMICAL ENGINEERS.

1. This refers to the actual design of the equipment and facilities necessary for carrying out
the process.
a. Process Engineering b. plant design c. process design d. optimum design
2. A chemical engineer specializing in the economic aspects of design is called
a. Plant Engineer b. cost engineer c. design engineer d. process engineer
3. The final step before developing construction plans for the plant and includes complete
specifications for all components of the plant and accurate costs based on quoted prices.
a. preliminary design c. firm process design
b. quick estimate design d. detailed design estimate
4. A design based on conditions giving the least cost per unit time and maximum profit per
unit production
a. battery limit c. optimum economic design
b. break even point d. plant design
5. A flow diagram, indicating the flow of materials, unit operations involved, equipment
necessary and special information on operating temperature and pressure is a
a. schematic diagram b. combined-detail flow diagram
b. qualitative flow diagram d. quantitative flow diagram
6. This involves all engineering aspects in the development of either a new, modified or
expanded industrial plant
a. plant design b. optimum design c. process design d. engineering design
7. Discusses the nature of the unsatisfied demand which the project seeks to meet, its
growth and the manner in which it is to be met
a. financial feasibility c. market feasibility
b. management feasibility d. technical feasibility
8. Discusses the nature of the product line, the technology necessary for production, its
availability, the proper mix of production resources and the optimum production volume.
a. market feasibility c. technical feasibility
b. socio- economic feasibility d. management feasibility
9. A thorough and systematic analysis of all factors that affect the possibility of success of a
proposed undertaking usually dealing with the market, technical, financial, socio
economic and management aspects is called
a. project feasibility study b. project development and research
b. plant design d. product development
10. 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 x (index value/ index value at original cost was
obtained)
The most major component of this cost index is
a. fabricated equipment and machinery c. pumps and compressor
b. process instruments and control d. electrical equipment and materials
11. A balance sheet for an industrial concern shows
a. the financial condition at any given time c. only fixed assets
b. only current assets d. only current and fixed assets
12. Effluent treatment cost of a chemical plant is categorized as the _____ cost.
a. Fixed b. utilities
b. Overhead d. capital

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 13. Construction expenses are roughly ___ percent of the total direct cost of the plant.
a. 2 b. 10 c. 30 d. 50
14. In financial accounting of a chemical plant, which of the following relationship is invalid?
a. Assets = equities c. Total income = cost + profits
b. Assets = liabilities + net worth d. Assets = capital
15. Payback period
a. and economic of a project are the same
b. is the length of time over which the earnings on a project equals the investment
c. is affected by the variation in earnings after the recovery of the investment
d. all of the above
16. _____ method for profitability evaluation of a project does not account for investment
cost due to land
a. Net present worth
b. Pay out period
c. Discounted cash flow
d. Rate of return in investment
17. _____ of depreciation calculation accounts for the interest on investment
a. Straight line method
b. Declining balance
c. Both a and b
d. Neither a nor b
18. Cost of instrumentation in modern chemical plant ranges from ___ percent of the total
plant cost
a. 5 to 10 b. 20 to 30 c. 40 to 50 d. 60 to 70
19. _____ taxes are based on gross earnings
a. property b. excise c. income d. capital gain
20. Break- even point is the point of intersection of
a. fixed cost and total cost
b. total cost and sales revenue
c. fixed cost and sales revenue
d. none of these
21. The ___ of a chemical company can be obtained directly from the balance sheet as
the difference between current assets and current liabilities
a. cash ratio b. current working capital c. current ratio d. liquids assets
22. Gantt chart or bar chart is helpful in
a. efficient utilization of manpower and machined
b. preparing production schedule
c. efficient dispatching of products
d. inventory control
23. Optimum number of effects in a multiple effect evaporator is decided by the ______
a. cost benefit analysis
b. floor area availability
c. terminal parameters
d. evaporation capacity required
24. Total product cost of a chemical plant does not include ______ cost
a. market survey
b. operating labor, supervision, and supplies
c. overhead and utilities

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 d. depreciation, property tax and insurance
25. Which of the following elements is not included in the scope of market analysis
a. competition from other manufacturers
b. product distribution
c. opportunities
d. economics
26. If the amount ‘R’ is paid at the end of every year for ‘n’ years, then the net present
value of the annuity at an interest rate of ‘i’ is
a. R[((1+i)n-1)/i]
b. [((1+i)n-1)/i(1+i)n]
c. R(1+i)n
d. R/(1+i)n
27. Expenditure on research and development is categorized as the ____, while making an
estimate for a total product cost of a chemical plant
a. overhead cost c. general expenses
b. fixed expenses d. direct production cost
28. Sixth tenth factor rule is used for estimating the
a. equipment installation cost
b. equipment cost by scaling
c. cost of piping
d. utility cost
29. 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
30. The total capital investment for a chemical process plant comprises of the fixed capital
investment and the
a. overhead cost
b. working capital
c. indirect production cost
d. direct production cost
31. A multiple effect evaporator produces 10,000 kg of salt from a 20% brine solution per
day. 1 kg of steam evaporates 0.7 N kg of water in N effects at a cost of 25 pesos per 1000
kg of steam. The cost of the first effect is 450,000 pesos and the additional effects at
300,000 pesos each. The life of the evaporator is 10 years with no salvage value. The
annual average cost of repair and maintenance is 10% and taxes and insurance are 5%.
Assume 300 operating days per year. The optimum number of effects for minimum annual
cost is
a. 3 effects c. 4 effects
b. 5 effects d. 2 effects
32. A smelting furnace operating at 2,400°F is to be insulated on the outside to reduce
heat losses and save on energy. The furnace wall consists of a ½ inch steel plate and 4-
inch-thick refractory inner lining. During operation without outer insulation, the outer
surface of the steel plate exposed to air has a temperature of 300°F. Ambient air
temperature is at 90°F. Operation is 300 days per year. Thermal conductivities in BTU/(hr-ft-
°F) are: steel pipe=26; refractory=0.1; insulation to be installed=0.025. The combined
radiation and convection loss to air irrespective of material exposed is 3 BTU/(hr-ft2-°F),

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 annual fixed charge is 20% of the initial insulation cost. If heat energy is 5 pesos per 10,000
BTU and installed cost of insulation is 100 pesos per inch ft2 of area, the optimum thickness
of the outer insulation that should be installed is
a. 8 in. c. 10 in.
b. 12 in. d. 6 in.
33. 100 lb moles of reactant A at a concentration of 0.01 lb mole per cu. Ft. is to be
reacted with reactant B to produce R and S. The reaction follows the aqueous phase
elementary reaction: A +B --- R + S, where k=500 cu. Ft/lbmole-hr.
The amount of R required is 95 lbmoles/hour.
Data:
1. In extracting R from the reacted mixture, A and B are destroyed
2. B costs 15 pesos per lb mole in crystalline form, and is very soluble in aqueous
solutions such that even when present in large amount does not affect A in
solution
3. Capital and operating cost for backmix reactor is 0.10 peso per cu.ft.-hr
The optimum backmix reactor size is
a. 23,900 ft3 b. 24,200 ft3 c. 25,900 ft3 d. 23,500 ft3
34. What is the capitalized equivalent amount (in php) at 10% of annual interest for a series
of annul receipts of 400 pesos for the first 10 years, which will increase to 500 pesos per year
after 10 years and remains constant thereafter?
a. 4,621 c. 4,452
b. 4,386 d. 9,954
35. Consider the following two mutually exclusive projects:
Net cash flow
End of Year Project A Project B
0 - $ 1,000 - $ 2,000
1 475 915
2 475 915
3 475 915
At an interest rate of 12%, what do you recommend?
a. Project A
b. Project B
c. Either one
d. Neither

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means, electronic, mechanical, photocopying, recording, or otherwise of any part of this document, without the prior written permission of SLU, is strictly prohibited.
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