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February 2019

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______________?

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______________?

A. 300
B. 600
C. 800
D. 1000

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______________? Read More »

Plant-Economics

‘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’ 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____________________?

A. (P – S)/n
B. 1 – (P/S)1/m
C. (m/n) (P – S)
D. [2 (n – m + 1)/n(n + 1)]. (P – S)

‘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____________________? Read More »

Plant-Economics

‘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 ?

‘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 ?

A. 1.2 to 1.4
B. 2.5 to 2.7
C. 4.2 to 4.4
D. 6.2 to 6.4

‘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 ? Read More »

Plant-Economics

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

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

A. p.i.n.
B. p(1 + i.n)
C. p(1 + i)n
D. p(1 – i.n)

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

Plant-Economics

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 ?

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 ?

A. Decreases
B. Increases
C. Increases linearly
D. Remain constant

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 ? Read More »

Plant-Economics