Related Questions
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4
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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4
Maximum production start up cost for making a chemical plant operational is about __________ percent of the fixed capital cost.
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4
Utilities cost in the operation of chemical process plant comes under the
C. Direct production cost
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4
For a typical project, the cumulative cash flow is zero at the
A. End of the project life
D. End of the design stage
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4
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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4
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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4
Personnel working in the market research group is responsible for the job of
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4
Which of the following is the costliest source of getting hydrogen on commercial scale for the manufacture of nitrogenous fertiliser?
B. Steam reforming of naphtha
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4
Break-even point is the point of intersection of
A. Fixed cost and total cost
B. Total cost and sales revenue
C. Fixed cost and sales revenue
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4
Pick out the wrong statement.
A. The annual depreciation rate for machinery and equipments in a chemical process plant is about 10% of the fixed capital investment
B. Annual depreciation rate of buildings in a chemical plant is about 3% of its initial cost
C. Insurance rates on annual basis in a chemical plant may be about 1% of the fixed capital investment
D. In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR)
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4
Functional depreciation of an equipment is the measure of decrease in its value due to its
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4
Effluent treatment cost in a chemical plant is categorised as the __________ cost.
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4
Pick out the wrong statement.
A. Net worth means paid up share capital and reserve & surplus (i.e. shareholders equity)
B. Return on equity = profit after tax/net worth
C. Working capital turnover ratio = sales/net working capital
D. Total cost of production is more than net sales realisation (NSR) at breakeven point
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4
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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4
__________ of depreciation calculation accounts for the interest on investment.
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4
Construction expenses are roughly __________ percent of the total direct cost of the plant.
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4
The amount of simple interest during 'n' interest period is (where, i = interest rate based on the length of one interest period, p = principal)
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4
__________ method for profitability evaluation of a project does not account for investment cost due to land.
D. Rate of return on investment
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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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4
Which of the following is the costliest material of construction used in pressure vessel construction?
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4
In a manufacturing industry, breakeven point occurs, when the
A. Total annual rate of production equals the assigned value
B. Total annual product cost equals the total annual sales
C. Annual profit equals the expected value
D. Annual sales equals the fixed cost
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4
In declining balance method of depreciation calculation, the
A. Value of the asset decreases linearly with time
B. Annual cost of depreciation is same every year
C. Annual depreciation is the fixed percentage of the property value at the beginning of the particular year
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4
Fixed capital investment of a chemical plant is the total amount of money needed to supply the necessary plant and manufacturing facilities plus the working capital for operation of the facilities. Which of the following components of fixed capital investment requires minimum percentage of it?
A. Electrical installation cost
B. Equipment installation cost
D. Equipment insulation cost
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4
If 'S' is the amount available after 'n' interest periods for an initial principal 'P' with the discrete compound interest rate 'i', the present worth is given by
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If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be __________ percent.
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If an amount R is paid at the end of every year for 'n' years, then the net present value of the annuity at an interest rate of i is
A. R [{(1 + i)n - 1}/ i ]
B. R [{(1 + i)n - 1}/ i (1 + i)n]
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4
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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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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4
Following the six-tenth factor rule, if a loglog plot of capacity of the equipment vs. cost of the equipment is made, then a straight line is obtained, whose slope is equal to
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4
Which of the following relationship is not correct is case of a chemical process plant?
A. Manufacturing cost = direct product cost + fixed charges + plant overhead costs
B. General expenses = administrative expenses + distribution & marketing expenses
C. Total product cost = manufacturing cost + general expenses
D. Total product cost = direct production cost + plant overhead cost