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4

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

A. Only slightly more

B. Much more

C. Slightly less

D. Almost equal

Correct Answer :

B. Much more


Related Questions

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4

The payback method for the measurement of return on investment

A. Gives a correct picture of profitability

B. Underemphasises liquidity

C. Does not measure the discounted rate of return

D. Takes into account the cash inflows after the recovery of investments

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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

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

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4

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

A. Competition from other manufactures

B. Product distribution

C. Opportunities

D. Economics

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4

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

A. Straight line

B. Sinking fund

C. Present worth

D. Declining balance

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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

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

A. Quarterly

B. Semi-annually

C. Annually

D. In no case, they are equal

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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

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

C. Pumps and compressor

D. Electrical equipments and material

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4

Pick out the wrong statement.

A. Gross revenue is that total amount of capital received as a result of the sale of goods or service

B. Net revenue is the total profit remaining after deducting all costs excluding taxes

C. The ratio of immediately available cash to the total current liabilities is known as the cash ratio

D. Consolidated income statement based on a given time period indicates surplus capital and shows the relationship among total income, costs & profit over the time interval

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4

Gross earning is equal to the total income minus

A. Total product cost

B. Fixed cost

C. Income tax

D. None of these

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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 a component of working capital investment?

A. Utilities plants

B. Maintenance and repair inventory

C. Process equipments

D. Depreciation

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4

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

A. 10 to 20

B. 35 to 45

C. 55 to 65

D. 70 to 80

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4

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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4

Factory manufacturing cost is the sum of the direct production cost

A. Fixed charges and plant overhead cost

B. And plant overhead cost

C. Plant overhead cost and administrative expenses

D. None of these

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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

A. 0.1

B. 0.6

C. 0.2

D. 0.8

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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

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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

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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

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]

C. R(1 + i)n

D. R/(1 + i)n

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4

Optimum economic pipe diameter for fluid is determined by the

A. Viscosity of the fluid

B. Density of the fluid

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

D. None of these

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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

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

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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4

Functional depreciation of an equipment is the measure of decrease in its value due to its

A. Ageing

B. Wear and tear

C. Obsolescence

D. Breakdown or accident

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4

A machine has an initial value of Rs. 5000, service life of 5 years and final salvage value of Rs. 1000. The annual depreciation cost by straight line method is Rs.

A. 300

B. 600

C. 800

D. 1000

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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

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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4

Profit is equal to revenue minus

A. Book value

B. Total cost

C. Operating cost

D. None of these

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4

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