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4

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.

A. 30

B. 50

C. 75

D. 95

Correct Answer :

B. 50


Related Questions

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4

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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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)

A. p.i.n.

B. p(1 + i.n)

C. p(1 + i)n

D. p(1 - i.n)

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4

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

A. Utilities plants

B. Maintenance and repair inventory

C. Process equipments

D. Depreciation

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4

The amount of compounded interest during 'n' interest periods is

A. p[(1+i)n - 1)]

B. p(1 + i)n

C. p(1 - i)n

D. p(1 + in)

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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?

A. Coal gasification

B. Steam reforming of naphtha

C. Electrolysis of water

D. Coke oven gas

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4

Which of the following is not a component of depreciation cost?

A. Repairs and maintenance cost

B. Loss due to obsolescence of the equipment

C. Loss due to decrease in the demand of product

D. Loss due to accident/breakdown in the machinery

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4

The __________ of a chemical company can be obtained directly from the balance sheet as the difference between current assets and current liabilities.

A. Cash ratio

B. Net working capital

C. Current ratio

D. Liquids assets

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4

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

A. 1000 (1 + 0.1/4)20

B. 1000 (1 + 0.1)20

C. 1000 (1 + 0.1/4)5

D. 1000 (1 + 0.1/2)5

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4

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

Which of the following ceramic packing materials is the costliest of all?

A. Berl saddles

B. Raschig rings

C. Pall rings

D. Intalox saddles

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4

Total product cost of a chemical plant does not include the __________ cost.

A. Market survey

B. Operating labour, supervision and supplies

C. Overhead and utilities

D. Depreciation, property tax and insurance

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4

A present sum of Rs. 100 at the end of one year, with half yearly rate of interest at 10%, will be Rs.

A. 121

B. 110

C. 97

D. 91

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4

Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant?

A. Cash reserve

B. Rate of return on investment

C. Payout period

D. Discounted cash flow based on full life performance

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4

__________ method for profitability evaluation of a project does not account for investment cost due to land.

A. Net present worth

B. Pay out period

C. Discounted cash flow

D. Rate of return on investment

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4

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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4

Out of the following, the depreciation calculated by the __________ method is the maximum.

A. Diminishing balance

B. Straight line

C. Sum of the years digit

D. Sinking fund

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4

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

A. Stainless steel

B. Plain carbon steel

C. Nickel

D. Copper

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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.

A. 15000

B. 16105

C. 18105

D. 12500

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4

Cost of instrumentation in a modern chemical plant ranges from __________ percent of the total plant cost.

A. 5 to 10

B. 20 to 30

C. 40 to 50

D. 60 to 70

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4

Scheduling provides information about the

A. Proper utilisation of machines

B. Means to minimise idle time for machines

C. Time of completion of job

D. Time of starting of job and also about how much work should be completed during a particular period

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4

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

A. Linearly

B. Non-linearly

C. Exponentially

D. Logarithmically

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4

Generally, income taxes are based on the

A. Total income

B. Gross earning

C. Total product cost

D. Fixed cost

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4

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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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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4

'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

A. 1.2 to 1.4

B. 2.5 to 2.7

C. 4.2 to 4.4

D. 6.2 to 6.4

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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

D. None of these

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4

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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4

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

A. Annually

B. Fortnightly

C. Monthly

D. Half-yearly

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4

In which of the electric power generation system, the operating cost is minimum?

A. Thermal

B. Nuclear

C. Hydroelectric

D. Fast breeder reactor

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4

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