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# Depreciation

A. Costs (on annual basis) are constant when the straight line method is used for its determination

B. Is the unavoidable loss in the value of the plant, equipment and materials with lapse in time

C. Does figure in the calculation of income tax liability on cash flows from an investment

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# An investment of Rs. 1000 is carrying an interest of 10% compounded quarterly. The value of the investment at the end of five years will be

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# 'Lang factor' is defined as the ratio of the capital investment to the delivered cost of major equipments. The value of 'Lang factor' for fixed capital investment, for a solid-fluid processing chemical plant ranges from

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# 'Utilities' in a chemical process plant includes compressed air, steam, water, electrical power, oxygen, acetylene, fuel gases etc. Utility costs for ordinary chemical process plants ranges roughly from __________ percent of the total product cost.

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# Which of the following is not a component of the fixed capital for a chemical plant facility?

A. Raw materials inventory

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# 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 × (index value at present/ index value at time original cost was obtained). The most major component of this cost index is

A. Fabricated equipment and machinery

B. Process instruments and control

D. Electrical equipments and material

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# Expenditure on research and development (R & D) is categorised as the __________, while making an estimate of the total product cost for a chemical plant.

D. Direct production cost

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# Which of the following is a component of working capital investment?

B. Maintenance and repair inventory

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# The depreciation during the year 'n', in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage 'N' to the

B. Book value at the end of (n - 1)th year

C. Depreciation during the (n - 1)th year

D. Difference between initial cost and salvage value

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# The inventory of raw materials included in the working capital is usually about __________ months supply of raw materials valued at delivery prices.

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# Which of the following elements is not included in the scope of market analysis?

A. Competition from other manufactures

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# Manufacturing cost in a chemical company does not include the

D. Administrative expenses

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# The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is

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# The value of a property decreases __________ with time in straight line method of determining depreciation.

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# Maximum production start up cost for making a chemical plant operational is about __________ percent of the fixed capital cost.

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# The ratio of working capital to total capital investment for most chemical plants (except for nonseasonal based products) is in the range of __________ percent.

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# Cost incurred towards __________ in a chemical plant is a component of the utilities cost.

B. Running a control laboratory

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# Purchased cost of equipments for a chemical process plant ranges from __________ percent of the fixed capital investment.

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# Accumulated sum at the end of 5 years, if Rs. 10000 is invested now at 10% interest per annum on a compound basis is Rs.

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# Optimum economic pipe diameter for fluid is determined by the

A. Viscosity of the fluid

C. Total cost considerations (pumping cost plus fixed cost of the pipe)

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# Equipment installation cost in a chemical process plant ranges from __________ percent of the purchased equipment cost.

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# Nominal and effective interest rates are equal, when the interest is compounded

D. In no case, they are equal

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# Effective and nominal interest rates are equal, when the interest is compounded

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# Payback period

A. And economic life 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

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# Most chemical plants use an initial working capital amounting to 10-20% of the total capital investment. But this percentage may increase to __________ percent in case of seasonal products manufacturing plant.

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# Which of the following is the cheapest material of construction for the storage of sodium hydroxide upto a concentration of 75%?

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# 'P' is the investment made on an equipment, 'S' is its salvage value and 'n is the life of the equipment in years. The depreciation for Rath year by the sum-of years digit method will be

D. [2 (n - m + 1)/n(n + 1)]. (P - S)

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# Relative cost of chemical process plants in India is about __________ percent more than the similar plants in U.S.A.

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# An annuity is a series of equal payments occuring at equal time intervals, and this amount includes the sum of all payments plus interest, if allowed to accumulate at a definite rate of interest from the time of initial payment to the end of annuity term. Ordinary annuity is used in the calculation of the

B. Depreciation by sinking fund method

C. Discrete compound interest

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# __________ taxes are based on gross earnings.