4

Linearly

Non-linearly

Exponentially

Logarithmically

A. Linearly

4

40,096

43,196

53,196

60,196

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

# Direct costs component of the fixed capital consists of

Contingencies

Onsite and offsite costs

Labour costs

Raw material costs

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

More

Less

Same

No

4

# 'Six-tenth factor' rule is used for estimating the

Equipment installation cost

Equipment cost by scaling

Cost of piping

Utilities cost

4

# Pick out the wrong statement.

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

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

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

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

4

5 to 10

20 to 30

40 to 50

60 to 70

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)

4

1.2 to 1.4

2.5 to 2.7

4.2 to 4.4

6.2 to 6.4

4

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

Equipment selection

Product evaluation

Equipment design

Cost estimation

4

# Operating profit of a chemical plant is equal to

Profit before interest and tax i.e., net profit + interest + tax

Profit after tax plus depreciation

Net profit + tax

Profit after tax

4

p.i.n.

p(1 + i.n)

p(1 + i)n

p(1 - i.n)

4

# Generally, income taxes are based on the

Total income

Gross earning

Total product cost

Fixed cost

4

One

Three

Six

Twelve

4

# Gross earning is equal to the total income minus

Total product cost

Fixed cost

Income tax

None of these

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

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

Cash ratio

Net working capital

Current ratio

Liquids assets

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

4

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

Multiple straight line method

Sinking fund method

Declining balance method

Sum of the years digit method

4

15000

16105

18105

12500

4

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

Net present worth

Pay out period

Discounted cash flow

Rate of return on investment

4

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

Utilities plants

Maintenance and repair inventory

Process equipments

Depreciation

4

# Fixed capital investment of a chemical plant is the total amount of money needed to supply the necessary plant and manufacturing facilities plus the working capital for operation of the facilities. Which of the following components of fixed capital investment requires minimum percentage of it?

Electrical installation cost

Equipment installation cost

Cost for piping

Equipment insulation cost

4

# __________ of depreciation calculation does not take into account the interest on investments.

Present worth method

Sinking fund method

Sum of the years-digits method

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

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

5 years

7 years

12 years

10 years

4

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

p(1 + i)n

p(1 - i)n

p(1 + in)

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

R [{(1 + i)n - 1}/ i ]

R [{(1 + i)n - 1}/ i (1 + i)n]

R(1 + i)n

R/(1 + i)n