Questions and answers for exam Preparation

MCQs

Total Questions : 398 | Page 38 of 40 pages

Question 371. ‘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 year‟s 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)

Discuss Question

Answer: Option D. -> [2 (n – m + 1)/n(n + 1)]. (P – S)
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 372. 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 ?

15000
16105
18105
12500

Discuss Question

Answer: Option B. -> 16105
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 373. 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 ?

Decreases
Increases
Increases linearly
Remain constant

Discuss Question

Answer: Option A. -> Decreases
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 374. ‘Lang factor’ is defined as the ratio of the capital investment to the delivered cost of major equipments. The value of ‘Lang factor’ for fixed capital investment, for a solid-fluid processing chemical plant ranges from ?

1.2 to 1.4
2.5 to 2.7
4.2 to 4.4
6.2 to 6.4

Discuss Question

Answer: Option C. -> 4.2 to 4.4
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 375. The amount of simple interest during ‘n’ interest period is (where, i = interest rate based on the length of one interest period, p = principal) ?

p.i.n.
p(1 + i.n)
p(1 + i)n
p(1 – i.n)

Discuss Question

Answer: Option A. -> p.i.n.
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 376. The economic life of a large chemical process plant as compared to a small chemical plant is_______________?

Only slightly more
Much more
Slightly less
Almost equal

Discuss Question

Answer: Option B. -> Much more
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 377. “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

Discuss Question

Answer: Option B. -> Total cost and sales revenue
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 378. Out of the following, the depreciation calculated by the _____________ method is the maximum?

Diminishing balance
Straight line
Sum of the years digit
Sinking fund

Discuss Question

Answer: Option A. -> Diminishing balance
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 379. A machine has an initial value of Rs. 5000, service life of 5 years and final salvage value of Rs. 1000. The annual depreciation cost by straight line method is Rs______________?

300
600
800
1000

Discuss Question

Answer: Option C. -> 800
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 380. 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 _____________?