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Plant Design and Economics for Chemical Engineers, 5/e

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