Chemical Engineering Plant Economics 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 10% 150% 1.5% 15% 10% 150% 1.5% 15% ANSWER DOWNLOAD EXAMIANS APP
Chemical Engineering Plant Economics Functional depreciation of an equipment is the measure of decrease in its value due to its Ageing Obsolescence Wear and tear Breakdown or accident Ageing Obsolescence Wear and tear Breakdown or accident ANSWER DOWNLOAD EXAMIANS APP
Chemical Engineering Plant Economics The payback method for the measurement of return on investment Gives a correct picture of profitability Takes into account the cash inflows after the recovery of investments Does not measure the discounted rate of return Underemphasises liquidity Gives a correct picture of profitability Takes into account the cash inflows after the recovery of investments Does not measure the discounted rate of return Underemphasises liquidity ANSWER DOWNLOAD EXAMIANS APP
Chemical Engineering Plant Economics 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 Depreciation by sinking fund method Discrete compound interest Manufacturing cost Cash ratio Depreciation by sinking fund method Discrete compound interest Manufacturing cost Cash ratio ANSWER DOWNLOAD EXAMIANS APP
Chemical Engineering Plant Economics If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be __________ percent. 10 < 20 20 >20 10 < 20 20 >20 ANSWER DOWNLOAD EXAMIANS APP
Chemical Engineering Plant Economics The depreciation during the year 'n', in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage 'N' to the Depreciation during the (n - 1)th year Difference between initial cost and salvage value Book value at the end of (n - 1)th year Initial cost Depreciation during the (n - 1)th year Difference between initial cost and salvage value Book value at the end of (n - 1)th year Initial cost ANSWER DOWNLOAD EXAMIANS APP