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MCQs

Total Questions : 398 | Page 8 of 40 pages
Question 71. The economic life of a large chemical process plant as compared to a small chemical plant is
  1.    Only slightly more
  2.    Much more
  3.    Slightly less
  4.    Almost equal
 Discuss Question
Answer: Option B. -> Much more
Question 72. Depreciation
  1.    Costs (on annual basis) are constant when the straight line method is used for its determination
  2.    Is the unavoidable loss in the value of the plant, equipment and materials with lapse in time
  3.    Does figure in the calculation of income tax liability on cash flows from an investment
  4.    All of the above
 Discuss Question
Answer: Option D. -> All of the above
Question 73. The amount of compounded interest during 'n' interest periods is
  1.    P[(1+i)n-1)]
  2.    P(1 + i)n
  3.    P(1 - i)n
  4.    P(1 + in)
 Discuss Question
Answer: Option A. -> P[(1+i)n-1)]
Question 74. Which of the following is the costliest source of getting hydrogen on commercial scale for the manufacture of nitrogeneous fertiliser?
  1.    Coal gasification
  2.    Steam reforming of naphtha
  3.    Alectrolysis of water
  4.    Coke oven gas
 Discuss Question
Answer: Option C. -> Alectrolysis of water
Question 75. The ratio of working capital to total capital investment for most chemical plants (except for non-seasonal based products) is in the range of __________ percent.
  1.    0.1 to 1
  2.    1 to 2
  3.    10 to 20
  4.    50 to 60
 Discuss Question
Answer: Option C. -> 10 to 20
Question 76. Which of the following methods of depreciation calculations results in book values greater than those obtained with straight line method?
  1.    Multiple straight line method
  2.    Sinking fund method
  3.    Declining balance method
  4.    Sum of the years digit method
 Discuss Question
Answer: Option B. -> Sinking fund method
Question 77. Maximum production start up cost for making a chemical plant operational is about __________ percent of the fixed capital cost.
  1.    1
  2.    5
  3.    10
  4.    30
 Discuss Question
Answer: Option C. -> 10
Question 78. 'Utilities' in a chemical process plant includes compressed air, steam, water, electrical power, oxygen, acetylene, fuel gases etc. Utility costs for ordinary chemical process plants ranges roughly from __________ percent of the total product cost.
  1.    1 to 5
  2.    10 to 20
  3.    25 to 35
  4.    35 to 45
 Discuss Question
Answer: Option B. -> 10 to 20
Question 79. Pick out the wrong statement.
  1.    The annual depreciation rate for machinery and equipments in a chemical process plant is about 10% of the fixed capital investment
  2.    Annual depreciation rate of buildings in a chemical plant is about 3% of its initial cost
  3.    Insurance rates on annual basis in a chemical plant may be about 1% of the fixed capital investment
  4.    In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR)
 Discuss Question
Answer: Option D. -> In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR)
Question 80. 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.
  1.    40096
  2.    43196
  3.    53196
  4.    60196
 Discuss Question
Answer: Option D. -> 60196

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