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4

If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be __________ percent.

A. 10

B. 20

C. > 20

D. < 20

Correct Answer :

C. > 20


Related Questions

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Which of the following is the costliest source of getting hydrogen on commercial scale for the manufacture of nitrogenous fertiliser?

A. Coal gasification

B. Steam reforming of naphtha

C. Electrolysis of water

D. Coke oven gas

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Which of the following is the costliest material of construction used in pressure vessel construction?

A. Low alloy steel

B. Lead

C. Titanium

D. High alloy steel

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4

Pick out the wrong statement.

A. Debt-equity ratio of a chemical company describes the lenders contribution for each rupee of owner's contribution i.e., debt-equity ratio = total debt/net worth

B. Return on investment (ROI) is the ratio of profit before interest & tax and capital employed (i.e. net worth + total debt)

C. Working capital = current assets + current liability

D. Turn over = opening stock + production closing stock

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Fixed charges for a chemical plant does not include the

A. Interest on borrowed money

B. Rent of land and buildings

C. Property tax, insurance and depreciation

D. Repair and maintenance charges

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Which of the following is not a component of the working capital for a chemical process plant?

A. Product inventory

B. In-process inventory

C. Minimum cash reserve

D. Storage facilities

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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

D. All (A), (B) and (C)

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

A. 15

B. 35

C. 55

D. 75

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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

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Personnel working in the market research group is responsible for the job of

A. Equipment selection

B. Product evaluation

C. Equipment design

D. Cost estimation

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Gantt chart (or Bar chart) is helpful in

A. Efficient utilisation of manpower and machines

B. Preparing production schedule

C. Efficient despatching of products

D. Inventory control

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The 'total capital investment' for a chemical process plant comprises of the fixed capital investment and the

A. Overhead cost

B. Working capital

C. Indirect production cost

D. Direct production cost

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

A. 10 to 20

B. 20 to 40

C. 45 to 60

D. 65 to 75

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4

__________ taxes are based on gross earnings.

A. Property

B. Excise

C. Income

D. Capital gain

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For a given fluid, as the pipe diameter increases, the pumping cost

A. Decreases

B. Increases

C. Remains the same

D. May increase or decrease, depending upon whether the fluid is Newtonian or non-Newtonian

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4

The ratio of gross annual sales to the fixed capital investment is termed as the __________ ratio.

A. Cash reserve

B. Capital

C. Turnover

D. Investment

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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

A. Initial cost

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

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

D. None of these

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4

Which of the following is not a current asset of a chemical company?

A. Inventories

B. Marketable securities

C. Chemical equipments

D. None of these

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A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual interest rate is 10%. The original cost of the reactor was Rs. 80000. The book value of the reactor after 5 years using sinking fund depreciation method will be Rs.

A. 40,096

B. 43,196

C. 53,196

D. 60,196

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A balance sheet for a chemical plant shows its financial condition at any given date. It does not contain the __________ of the plant.

A. Current asset

B. Current liability

C. Long term debt

D. Profit

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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

D. None of these

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A shareholder has __________ say in the affairs of company management compared to a debenture holder.

A. More

B. Less

C. Same

D. No

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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

B. Utilities plants

C. Process equipment

D. Emergency facilities

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Which of the following methods of depreciation calculations results in book values greater than those obtained with straight line method?

A. Multiple straight line method

B. Sinking fund method

C. Declining balance method

D. Sum of the years digit method

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4

Cost of piping in a fluid processing unit (e.g., distillation) of a chemical process plant is about __________ percent of the fixed capital investment.

A. 4

B. 13

C. 22

D. 34

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4

In an ordinary chemical plant, electrical installation cost may be about

A. 10-15% of purchased equipment cost

B. 3-10% of fixed capital investment

C. Either (A) or (B)

D. Neither (A) nor (B)

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Direct costs component of the fixed capital consists of

A. Contingencies

B. Onsite and offsite costs

C. Labour costs

D. Raw material costs

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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

A. (1 + i)n/S

B. S/(1 + i)n

C. S/(1 + in)

D. S/(1 + n)i

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With increase in the discounted cash flow rate of return, the ratio of the total present value to the initial investment of a given project

A. Decreases

B. Increases

C. Increases linearly

D. Remain constant

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

A. Linearly

B. Non-linearly

C. Exponentially

D. Logarithmically