CHEMICAL ENGINEERING PLANT ECONOMICS QUIZ

Which of the following methods of depreciation calculations results in book values greater than those obtained with straight line method?

Sum of the years digit method

Declining balance method

Multiple straight line method

Sinking fund method

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Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant?

Payout period

Discounted cash flow based on full life performance

Rate of return on investment

Cash reserve

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Profit is equal to revenue minus

None of these

Operating cost

Total cost

Book value

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A series of equal payments (e.g., deposit or cost) made at equal intervals of time is known as

Annuity

Perpetuity

Future worth

Capital charge factor

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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

Discrete compound interest

Cash ratio

Manufacturing cost

Depreciation by sinking fund method

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Annual depreciation cost are not constant when, the __________ method of depreciation calculation is used.

Present worth

Declining balance

Sinking fund

Straight line

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Pick out the correct statement.

Unamortised cost is the difference between the original cost of a property and all the depreciation charges made to dat

Scrap value is the net amount of money obtainable from the sale of used property over and above any charges involved in its removal & sale

Difference between income and expense is termed as gross revenue

Sum-of-the-years-digits methods of depreciation calculation accounts for the interest on the investment

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Which of the following is not a component of working capital?

Finished products in stock

Transportation facilities

Semi-finished products in the process

Raw materials is stock

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A present sum of Rs. 100 at the end of one year, with half yearly rate of interest at 10%, will be Rs.

121

97

110

91

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Which of the following is not a current asset of a chemical company?

None of these

Chemical equipments

Inventories

Marketable securities

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