4

# '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

(P - S)/n

1 - (P/S)1/m

(m/n) (P - S)

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

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

4

30

50

75

95

4

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

Decreases

Increases

Remains the same

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

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

1000 (1 + 0.1/4)20

1000 (1 + 0.1)20

1000 (1 + 0.1/4)5

1000 (1 + 0.1/2)5

4

Warehousing

Legal fees

Customer service

4

Raschig rings

Pall rings

4

# Pick out the wrong statement.

The annual depreciation rate for machinery and equipments in a chemical process plant is about 10% of the fixed capital investment

Annual depreciation rate of buildings in a chemical plant is about 3% of its initial cost

Insurance rates on annual basis in a chemical plant may be about 1% of the fixed capital investment

In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR)

4

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

Quarterly

Semi-annually

Annually

In no case, they are equal

4

General expenses

R & D cost

None of these

4

# In declining balance method of depreciation calculation, the

Value of the asset decreases linearly with time

Annual cost of depreciation is same every year

Annual depreciation is the fixed percentage of the property value at the beginning of the particular year

None of these

4

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

10-15% of purchased equipment cost

3-10% of fixed capital investment

Either (A) or (B)

Neither (A) nor (B)

4

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

Initial cost

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

Depreciation during the (n - 1)th year

Difference between initial cost and salvage value

4

# Annual depreciation cost are not constant when, the __________ method of depreciation calculation is used.

Straight line

Sinking fund

Present worth

Declining balance

4

# The economic life of a large chemical process plant as compared to a small chemical plant is

Only slightly more

Much more

Slightly less

Almost equal

4

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

Equipment selection

Product evaluation

Equipment design

Cost estimation

4

n

n0.6

n0.4

√n

4

15

35

55

75

4

# 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

Manufacturing cost

Depreciation by sinking fund method

Discrete compound interest

Cash ratio

4

5 years

7 years

12 years

10 years

4

# Break-even point is the point of intersection of

Fixed cost and total cost

Total cost and sales revenue

Fixed cost and sales revenue

None of these

4

# __________ of depreciation calculation accounts for the interest on investment.

Straight line method

Declining balance

Both (A) and (B)

Neither (A) nor (B)

4

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

Cash reserve

Rate of return on investment

Payout period

Discounted cash flow based on full life performance

4

40,096

43,196

53,196

60,196

4

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

Utilities plants

Maintenance and repair inventory

Process equipments

Depreciation

4

# 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

Decreases

Increases

Increases linearly

Remain constant

4

300

600

800

1000

4

2

10

30

50

4

# Fixed charges for a chemical plant does not include the

Interest on borrowed money

Rent of land and buildings

Property tax, insurance and depreciation

Repair and maintenance charges

4

# A series of equal payments (e.g., deposit or cost) made at equal intervals of time is known as

Perpetuity

Capital charge factor

Annuity

Future worth

4

# Optimum number of effects in a multiple effect evaporator is decided by the

Cost benefit analysis

Floor area availability

Terminal parameters

Evaporation capacity required