The payback method for the measurement of return on investment
Gives a correct picture of profitability
Underemphasises liquidity
Does not measure the discounted rate of return
Takes into account the cash inflows after the recovery of investments
- A series of equal payments (e.g., deposit or cost) made at equal intervals of time is known as
- A machine has an initial value of Rs. 5000, service life of 5 years and final salvage value of Rs. 1000.…
- The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project…
- A present sum of Rs. 100 at the end of one year, with half yearly rate of interest at 10%, will be Rs.
- Equipment installation cost in a chemical process plant ranges from __________ percent of the purchased…
- The __________ of a chemical company can be obtained directly from the balance sheet as the difference…
- With increase in the discounted cash flow rate of return, the ratio of the total present value to the…
- Cost of piping in a fluid processing unit (e.g., distillation) of a chemical process plant is about…
- 'Utilities' in a chemical process plant includes compressed air, steam, water, electrical power, oxygen,…
- Which of the following ceramic packing materials is the costliest of all?
- The ratio of gross annual sales to the fixed capital investment is termed as the __________ ratio.
- Which of the following is not a mathematical method for evaluation of profitability of a chemical process…
- Fixed capital investment of a chemical plant is the total amount of money needed to supply the necessary…
- Which of the following relationship is not correct is case of a chemical process plant?
- Manufacturing cost in a chemical company does not include the
- Total product cost of a chemical plant does not include the __________ cost.
- Annual depreciation costs are constant, when the __________ method of depreciation calculation is used.
- A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual…
- Out of the following, the depreciation calculated by the __________ method is the maximum.
- Personnel working in the market research group is responsible for the job of
- 'Lang factor' is defined as the ratio of the capital investment to the delivered cost of major equipments.…
- A balance sheet for a chemical plant shows its financial condition at any given date. It does not contain…
- Pick out the wrong statement.
- Direct costs component of the fixed capital consists of
- Pick out the wrong statement.
- Construction expenses are roughly __________ percent of the total direct cost of the plant.
- Most chemical plants use an initial working capital amounting to 10-20% of the total capital investment.…
- Which of the following is not a component of depreciation cost?
- Depreciation
- Payback period