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

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bIncreases

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cIncreases linearly

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dRemain constant

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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

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bDepreciation by sinking fund method

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cDiscrete compound interest

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dCash ratio

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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

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

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cWorking capital = current assets + current liability

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dTurn over = opening stock + production closing stock

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


aPlant overhead cost

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bFixed charges

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cDirect production cost

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dGeneral expenses

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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

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

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cDepreciation during the (n – 1)th year

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dDifference between initial cost and salvage value

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


a10

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b20

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c> 20

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d< 20

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View Answer > 20

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


a10 to 20

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b35 to 45

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c55 to 65

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d70 to 80

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View Answer 35 to 45

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


aCompetition from other manufactures

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bProduct distribution

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cOpportunities

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dEconomics

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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

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b50

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c75

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d95

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View Answer 50

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


aNet present worth

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bPay out period

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cDiscounted cash flow

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dRate of return on investment

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View Answer Pay out period

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