An investment of Rs. 100 lakhs is to be made for construction of a plant, which will take two years to start production. The annual profit from the operation of the plant is Rs. 20 lakhs. What will be the payback time?

A. 5 years

B. 7 years

C. 12 years

D. 10 years

Please do not use chat terms. Example: avoid using "grt" instead of "great".

You can do it
  1. A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual…
  2. Manufacturing cost in a chemical company does not include the
  3. Pick out the wrong statement.
  4. Direct costs component of the fixed capital consists of
  5. The ratio of gross annual sales to the fixed capital investment is termed as the __________ ratio.
  6. A balance sheet for a chemical plant shows its financial condition at any given date. It does not contain…
  7. Expenditure on research and development (R & D) is categorised as the __________, while making an estimate…
  8. In an ordinary chemical plant, electrical installation cost may be about
  9. Gross earning is equal to the total income minus
  10. The __________ of a chemical company can be obtained directly from the balance sheet as the difference…
  11. Factory manufacturing cost is the sum of the direct production cost
  12. Which of the following is not a component of the working capital for a chemical process plant?
  13. Which of the following ceramic packing materials is the costliest of all?
  14. Nominal and effective interest rates are equal, when the interest is compounded
  15. Which of the following is not a component of depreciation cost?
  16. A machine has an initial value of Rs. 5000, service life of 5 years and final salvage value of Rs. 1000.…
  17. Cost incurred towards __________ in a chemical plant is a component of the utilities cost.
  18. Accumulated sum at the end of 5 years, if Rs. 10000 is invested now at 10% interest per annum on a compound…
  19. Operating profit of a chemical plant is equal to
  20. Optimum economic pipe diameter for fluid is determined by the
  21. The inventory of raw materials included in the working capital is usually about __________ months supply…
  22. __________ of depreciation calculation does not take into account the interest on investments.
  23. Construction expenses are roughly __________ percent of the total direct cost of the plant.
  24. The amount of simple interest during 'n' interest period is (where, i = interest rate based on the length…
  25. Functional depreciation of an equipment is the measure of decrease in its value due to its
  26. Which of the following does not come under the sales expenses for a product of a chemical plant?
  27. Effective and nominal interest rates are equal, when the interest is compounded
  28. In declining balance method of depreciation calculation, the
  29. 'Six-tenth factor' rule is used for estimating the
  30. 'P' is the investment made on an equipment, 'S' is its salvage value and 'n is the life of the equipment…