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.Management Sciences
Category: Plant-Economics
The economic life of a large chemical process plant as compared to a small chemical plant is_______________?
0
A. Only slightly more
B. Much more
C. Slightly less
D. Almost equal
Effective and nominal interest rates are equal, when the interest is compounded__________________?
A. Annually
B. Fortnightly
C. Monthly
D. Half-yearly
In financial accounting of a chemical plant, which of the following relationship is invalid ?
A. Assets = equities
B. Assets = liabilities + net worth
C. Total income = costs + profits
D. Assets = capital
Annual depreciation costs are constant, when the ______________ method of depreciation calculation is used ?
A. Declining balance
B. Straight line
C. Sum of the years digit
D. None of these
Which of the following methods of depreciation calculations results in book values greater than those obtained with straight line method ?
A. Multiple straight line method
B. Sinking fund method
C. Declining balance method
D. Sum of the years digit method
The amount of compounded interest during ‘n’ interest periods is_________________?
A. p[(1+i)n – 1)]
B. p(1 + i)n
C. p(1 – i)n
D. p(1 + in)
_____________ 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
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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