Chemical Engineering MCQs

Page No. 753

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 ?


aDecreases


bIncreases


cIncreases linearly


dRemain constant


View Answer Decreases

An annuity is a series of equal payments occuring at equal time intervals, and this amount includes the sum of all payments plus interest, if allowed to accumulate at a definite rate of interest from the time of initial payment to the end of annuity term. Ordinary annuity is used in the calculation of the__________________?


aManufacturing cost


bDepreciation by sinking fund method


cDiscrete compound interest


dCash ratio



Pick out the wrong statement ?


aDebt-equity ratio of a chemical company describes the lenders contribution for each rupee of owner’s contribution i.e., debt-equity ratio = total debt/net worth


bReturn on investment (ROI) is the ratio of profit before interest & tax and capital employed (i.e. net worth + total debt)


cWorking capital = current assets + current liability


dTurn over = opening stock + production closing stock



Utilities cost in the operation of chemical process plant comes under the ?


aPlant overhead cost


bFixed charges


cDirect production cost


dGeneral expenses



The depreciation during the year ‘n’, in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage ‘N’ to the ?


aInitial cost


bBook value at the end of (n – 1)th year


cDepreciation during the (n – 1)th year


dDifference between initial cost and salvage value



If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be ______________ percent ?


a10


b20


c> 20


d< 20


View Answer > 20

Equipment installation cost in a chemical process plant ranges from _______________ percent of the purchased equipment cost ?


a10 to 20


b35 to 45


c55 to 65


d70 to 80


View Answer 35 to 45

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


aCompetition from other manufactures


bProduct distribution


cOpportunities


dEconomics


View Answer Economics

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?


a30


b50


c75


d95


View Answer 50

_____________ method for profitability evaluation of a project does not account for investment cost due to land ?


aNet present worth


bPay out period


cDiscounted cash flow


dRate of return on investment


View Answer Pay out period

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