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Plant Design and Economics for Chemical Engineers, 5/e
Max S. Peters, University of Colorado
Klaus Timmerhaus, University of Colorado, Boulder
Ronald E. West, University of Colorado, Boulder


True or False Quiz

This online quiz contains 8 questions. Click on the button next to the selection that best answers the question. To review your results, click on the Submit Answers button displayed after the last question. Good luck!



1

A nominal interest rate always has a compounding period equal to or less than a year.
A)TRUE
B)FALSE
2

If the compounding period is not stated for a particular interest rate, it is assumed to be equal to the period over which the interest rate is expressed.
A)TRUE
B)FALSE
3

For an interest rate that is compounded annually, it is possible to calculate an effective interest rate for a three-year time period just by multiplying the annual rate by three.
A)TRUE
B)FALSE
4

Depreciation is a reduction in value of an asset which reflects its actual usage during ownership.
A)TRUE
B)FALSE
5

Market value represents the remaining undepreciated investment on the books after the depreciation charges to date have been subtracted.
A)TRUE
B)FALSE
6

Recovery period refers to the depreciable life of an asset.
A)TRUE
B)FALSE
7

Although land is considered as real property, it is not depreciable.
A)TRUE
B)FALSE
8

Switching from declining balance depreciation to straight line depreciation is an inherent feature of the straight-line alternative (option) to the MACRS depreciation method.
A)TRUE
B)FALSE