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February 2019

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 payback time ?

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 payback time ?

A. 5 years
B. 7 years
C. 12 years
D. 10 years

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 payback time ? Read More »

Plant-Economics

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

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

A. Cash reserve
B. Rate of return on investment
C. Payout period
D. Discounted cash flow based on full life performance

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

Plant-Economics

The inventory of raw materials included in the working capital is usually about ______________ month‟s supply of raw materials valued at delivery prices?

The inventory of raw materials included in the working capital is usually about ______________ month‟s supply of raw materials valued at delivery prices?

A. One
B. Three
C. Six
D. Twelve

The inventory of raw materials included in the working capital is usually about ______________ month‟s supply of raw materials valued at delivery prices? Read More »

Plant-Economics

In declining balance method of depreciation calculation, the _____________________?

In declining balance method of depreciation calculation, the _____________________?

A. Value of the asset decreases linearly with time
B. Annual cost of depreciation is same every year
C. Annual depreciation is the fixed percentage of the property value at the beginning of the
particular year

D. None of these

In declining balance method of depreciation calculation, the _____________________? Read More »

Plant-Economics

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 ?

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 ?

A. 0.1 to 1
B. 1 to 2
C. 10 to 20
D. 50 to 60

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 ? Read More »

Plant-Economics