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MCQs

Total Questions : 398 | Page 7 of 40 pages
Question 61. If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be __________ percent.
  1.    10
  2.    20
  3.    >20
  4.    < 20
 Discuss Question
Answer: Option C. -> >20
Question 62. The inventory of raw materials included in the working capital is usually about __________ months supply of raw materials valued at delivery prices.
  1.    One
  2.    Three
  3.    Six
  4.    Twelve
 Discuss Question
Answer: Option A. -> One
Question 63. The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is
  1.    15%
  2.    10%
  3.    1.5%
  4.    150%
 Discuss Question
Answer: Option C. -> 1.5%
Question 64. An investment of Rs. 100 lakhs is to be made for construction of a plant, which will take two years to start production. The annual profit from the operation of the plant is Rs. 20 lakhs. What will be the pay back time?
  1.    5 years
  2.    7 years
  3.    12 years
  4.    10 years
 Discuss Question
Answer: Option A. -> 5 years
Question 65. For a typical project, the cumulative cash flow is zero at the
  1.    End of the project life
  2.    Break even point
  3.    Start up
  4.    End of the design stage
 Discuss Question
Answer: Option B. -> Break even point
Question 66. 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.
  1.    300
  2.    600
  3.    800
  4.    1000
 Discuss Question
Answer: Option C. -> 800
Question 67. Fixed charges for a chemical plant does not include the
  1.    Interest on borrowed money
  2.    Rent of land and buildings
  3.    Property tax, insurance and depreciation
  4.    Repair and maintenance charges
 Discuss Question
Answer: Option D. -> Repair and maintenance charges
Question 68. Which of the following is not a component of working capital?
  1.    Raw materials is stock
  2.    Finished products in stock
  3.    Transportation facilities
  4.    Semi-finished products in the process
 Discuss Question
Answer: Option C. -> Transportation facilities
Question 69. Functional depreciation of an equipment is the measure of decrease in its value due to its
  1.    Ageing
  2.    Wear and tear
  3.    Obsolescence
  4.    Breakdown or accident
 Discuss Question
Answer: Option C. -> Obsolescence
Question 70. The value of a property decreases __________ with time in straight line method of determining depreciation.
  1.    Linearly
  2.    Non-linearily
  3.    Exponentially
  4.    Logarithmically
 Discuss Question
Answer: Option A. -> Linearly

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