FLORES CHEMICAL ENGINEERING REVIEW CENTER

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Cell. No. 0920-8911-395 / Email : fcherc_cebu@[Link]
CHE REVIEW February 6, 2023
Unit Operations Economics
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Optimization
1. A pressure vessel is to be made from a cylinder of diameter X meters capped with a hemisphere. The
cost of the cylinder section is 1,800 X0.5 in P per meter of length and the cost for one hemispherical end
is 1,400 X2.4 in pesos. The vessel is to hold 40 cubic meter. Find the optimum dimension X.
A. 2.5 m B. 2.25 m C. 2.0 m D. 2.75 m
2. Circular cylindrical cans of volume Vo are to be manufactured with both ends closed. The ratio of the
diameter and height that will require the minimum amount of metal in each can is
A. 0.16 B. 0.8 C. 1.0 D. 1.2
3. The annual fixed costs for an insulation installation can be expressed as C F = 30 ln 2S + 10S pesos per
year where S is the insulation thickness in inches, and the annual costs of energy lost from the
installation is expressed as CD = 120/S dollars per year. Determine the insulation thickness which will
give the minimum annual insulation cost.
A. 2.27 in * B. 3.12 in C. 3.75 in D. 4.15 in
4. What is the most economical number of effects to use in the recovery of black liquor in a paper plant if
the following cost data are available? The annual fixed costs increase essentially linearly with each
effect (except for condensing, feeding, and other equipment costs for multiple units which may be
considered to balance each other). If a fixed amount of evaporation is to be obtained and each unit is to
have 1,000 ft² of heating surface with a service life of 5 years, the annual fixed costs C F would be
1000 0.6 25000𝑁
( ) ( ) dollars per year, where N is the number of effects. Because of the steam economy in
5000 5
multiple-effect operation, the direct costs for steam and the total of all annual direct costs, C D, has been
established for this type of operation as 65,000N -0.95 dollars.
A. 3 B. 4 C. 5 D. 6
5. The following equations shows the effect of the variables x and y on the total cost of a particular operation
: C = 2.33 x + 4900/xy + 1.86y +10. Determine the values of x and y that will give the least total cost.
A. (11.88, 14.90) * B. (20.12,16.75) C. (14.37,25.54) D. (16.80,27.90)
Breakeven Analysis
6. The fixed cost per day of a plant producing a certain type of chemical is P10,000 / day. The selling price
of the chemical is P150 / lb. The variable cost may be expressed as 10/P + 0.1P in pesos per pound
where in P = production rate in lbs/day. Find the break-even capacity of the plant in lb/day.
A. 70 B. 1430 C. 70 or 1430 * D. 100
{7-8} A plant produces phenol. The variable cost in pesos per tonne of phenol is related to the plant capacity
P (in tones/day) as 45,000 + 5P. The fixed charges are P 100.000 per day. The selling price of phenol is P.
50,000 per tonne.
7. The optimal plant capacity (in tones per day) for minimum cost per tonne of phenol, is
A. 101 B. 141 * C. 283 D. 422
8. The break-even capacity in tones per day, is
A. 50 B. 40 C. 30 D. 20 *
Cost Index, Six Tenth Factor Rule & Lang Factor
9. The cost of a glass lined receiver with a nominal capacity of 1000 gallons is P22,000. Find the estimated
cost of a similar receiver but with a nominal capacity of 2000 gallons.
A. P44,000 B. P33,000 * C. P50,000 D. P25,000
10. A purchase cost of 0.2-m³, glass-lined, jacketed reactor was P10,000 in 1991. Estimate the purchased
cost of a similar 2-m³, glass-lined, jacketed reactor in 1996. Cost index in 1991 was 361 and in 1996
was 382.
A. P32,180 B. P27,850 C. P18,720 D. P42,127 *

BRINGHOME EXAM
“ Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you
did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails.
Explore. Dream. Discover. “ -Mark Twain
1. A small company borrowed P10,000 to expand its business. The entire principal of P10,000 will be
repaid in two years, but quarterly interest of P330 must be paid every three months. The nominal
annual interest rate the company is paying is closest to
A. 3.3% B. 5.0% C. 6.6% D. 13.2% *
2. The cost of a 250 m² exchanger is $500000. What is the estimated 0rder-of-magnitude cost of a similar
900 m² exchanger? Use 0.62 exponent for the cost.
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 A. $1106312 * B. 1289200 C. 1355890 D. 1544800
3. From the data in problem#2, what will be the installed cost of the 900 m² exchanger? Use 3.3 as the
Lang factor for installation.
A. $3650830 * B. $3210550 C. $2987550 D. $2788955
4. The material cost at erection site for a 10,000 bbl/stream day vacuum distillation unit is P600000.
Estimate the cost of a similar unit with a capacity of 30,000 bbl/stream day?
A. P715,300 B. P1,160,000 * C. P 890,650 D. 934,200
5. The City of Auburn has decided to build a softball complex and the city council has already voted to
fund the project at the level of $800,000 (initial capital investment). The city engineer has collected the
following financial information for the complex project.
• Annual upkeep costs: $120,000
• Annual utility costs: $13,000
• Renovation costs: $50,000 for every 5 years
• Annual team user fees (revenues): $32,000
• Useful life: Infinite
• Interest rate: 8%
If the city can expect 40,000 visitors to the complex each year, what should be the minimum ticket price per
person so that the city can breakeven?
In answering the question, identify the range that contains the solution.
A. Price: greater than $2.50 and less or equal $3.00
B. Price: greater than $3.00 and less or equal $3.50
C. Price: greater than $3.50 and less or equal $4.00
D. Price: greater than $4.00 and less or equal $4.50
6. An old highway bridge may be strengthened at a cost of P9000 or it may be replaced for P40,000. The
present salvage value of the old bridge is P13,000. It is estimated that the reinforced bridge will last for
20 years with an annual cost of P500 and will have a salvage value of P10,000 at the end of 20 years.
The estimated salvage value of the new bridge after 25 years is P15,000. The maintenance for the new
bridge will be P100 annually. Which is the best alternative at 8%. Assume the bridge will be there
forever.
A. keep old bridge * B. replaced old bridge C. need more data D. either
7. The projected annual after-tax profit of a project which would need an investment of P1M is as follows :
Year Annual after-tax profit
1 P100,000
2 P200,000
3 P300,000
4 P400,000
5 P500,000
6 0
Find the ROI in %.
A. 0.25 B. 0.025 C. 2.5 D. 25 *
8. Estimate the optimum economic inside diameter of pipe when 10,000 gal of a liquid having a density of
58 lb/ft3 flow through the pipe per hour. The flow is turbulent. The approximate value for the optimum
diameter of a steel pipe may be obtained from the following dimensional equation:
2.2w 0.45
Di=
ρ0.32
where Di = optimum inside pipe diameter, in. ; w = mass rate, 1,000 lb/h
ρ = density of flowing flowing, lb/ft3
A. 5.3 in. B. 3.3 in. C. 4.3 in. D. 3.7 in.
9. You borrow P3,500 for one year from a friend at an interest rate of 1.5% per month instead of taking a
loan from a bank at a rate of 18% per year. Compare how much many you will save or lose on the
transaction.
A. You will pay P155 more than if you borrowed from the bank
B. You will save P55 by borrowing from your friend
C. You will pay P85 more than if you borrowed from the bank
D. You will pay P55 less than if you borrowed from the bank
10. A multiple effect evaporator produces 10,000 kg of salt from a 20% brine solution per day. One kg of
steam evaporates 0.7 N kg of water in N effects at a cost of P25 per 1000 kg of steam. The cost of the
first effect is P450,000 and the additional effects at P 300,000 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 is 5%. The optimum number of effects for minimum annual cost is
A. 3 effects B. 5 effects C. 4 effects D. 2 effects *
11. A solution containing 10 per cent of caustic soda is to be concentrated to a 35 per cent solution at the
rate of 180000 kg/day during a year of 300 working days. A suitable single-effect evaporator for this
purpose, neglecting the condensing plant, costs $1600 and for a multiple-effect evaporator the cost may
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 be taken as $1600N, where N is the number of effects. Boiler steam may be purchased at$0.20/1000 kg
and the vapour produced may be assumed to be 0.85N kg/kg of boiler steam. Assuming the interest on
capital, depreciation, and other fixed charges amount to 45 per cent of the capital involved per annum,
and that the cost of labour is constant and independent of the number of effects employed, determine
the number of effects which, based on the data given, will give the maximum economy.
A. 1 B. 2 C. 3 D. 4 *
12. The total annual venture cost for insulating an oven may be expressed by :
Total annual venture cost = 870/(0.25+2.78T) + 17.25T
where T= insulation thickness in inches. Find the optimum economic insulation thickness.
A. 2 in B. 3 in C. 1 in D. 4 in *
13. A plant produces small water pumps at the rate of X units per day. The variable cost per pump has been
established to be 47.73 + 0.1X1.2. The total daily fixed charges are P1750, and all other expenses are
constant at P7325 per day. If the selling price per pump is P173, determine the daily profit at a production
schedule giving the minimum cost per pump.
A. P4040 * B. P4120 C. P4200 D. P4440
14. Refer to problem 13, determine the daily profit at a production schedule giving the maximum daily profit.
A. P4040 B. P4120 C. P4200 D. P4440 *
15. Refer to problem 13, determine the production schedule at the breakeven point.
A. 60 units/day B. 72 units/day C. 88 units/day * D. 94 units/day
16. The tubes of an evaporator costs P8000, last 8 years, and require a labor cost of P2000/yr of cleaning.
Tubes can be operated under essentially non-scaling conditions. This will shorten the life of the tubes
but will reduce the labor cost for cleaning to P500/yr and result in an estimated additional savings of
P1200/yr because of better heat transfer. If current cost of capital is 10% how long must the tubes last
under the second set of conditions to permit this method of operation?
A. 4-5 years B. 2-3 years * C. 6-7 years D. 8-9 years
17. The fixed cost for a steam line per meter of pipe is 350 x +18; P/year and the cost for loss of heat from
the pipe per meter is 1.6/x; P/year, where x is the thickness of insulation in meters. The optimum
thickness of the insulation is
A. 0.068 m * B. 0.68 m C. 0.088 m D. 0.072 m
18. Geo-Star Manufacturing Company is considering a new investment in a punch press machine that will
cost $100,000 and has an annual maintenance cost of $10,000. There is also an additional overhauling
cost of $20,000 for the equipment once every four years. Assuming that this equipment will last infinitely
under these conditions, what is the capitalized equivalent cost of this investment at an interest rate of
10%?
A. CE (10%) <= $236100 C. $236100 < CE (10%) <= $238100
B. $238100 < CE (10%) <= $240100 D. $240100 < CE (10%) <= $242100 *
19. For how many years must an investment of P 63,000 provide a continuous flow of funds at the rate of P
16,000 per year so that a nominal interest rate of 10%, continuously compounded, will be earned?
A. 2 years B. 3 years C. 5 years * D. 7 years
20. How much can be paid for a P 50,000, 10% bond, with interest paid semiannually, if the bond matures
12 years hence? Assume that the purchaser will be satisfied with 8% nominal interest compounded
semiannually?
A. P 57,620 * B. P 75,260 C. P 57,720 D. P 75,620
21. A drill press machine canbepurchasedat P100,000.00 and isexpected to have a constant salvage value
of P20,000.00 regardless of itsage. The operating cost for the first yearisexpected to be P40,000.00 and
itwillthenincrease P20,000.00 per year as a result of degradingefficiency. If the interest rate is 10%,
determine the economic service life of the drill press machine.
A. 2 yrs B. 3 yrs* C. 4 yrs D. 5 yrs
22. Production of a chemical plant of a rated manufacturing capacity 100,000 tons of chemical per year
involves the following costs:
Plant investment…………………..$10,000,000.00
Overhead costs…………………….$1,000,000.00/yr
Manufacturing costs……………….$50/ton
Selling price………………………..$100/ton
Assuming depreciation of 10%, calculate the breakeven capacity as a percent of rated capacity of the
chemical plant.
A. 30% B. 40%* C. 50% D. 60%

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