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.Management Sciences
Category: Plant-Economics
Manufacturing cost in a chemical company does not include the____________________?
A. Fixed charges
B. Plant overheads
C. Direct products cost
D. Administrative expenses
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
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
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
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
Depreciation________________?
A. Costs (on annual basis) are constant when the straight line method is used for its
determination
B. Is the unavoidable loss in the value of the plant, equipment and materials with lapse in time
C. Does figure in the calculation of income tax liability on cash flows from an investment
D. All A, B. and C.
‘Six-tenth factor’ rule is used for estimating the_________________?
A. Equipment installation cost
B. Equipment cost by scaling
C. Cost of piping
D. Utilities cost
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