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)
Correct Answer: D. [2 (n – m + 1)/n(n + 1)]. (P – S) ✔
Last Updated: February 12, 2019
Related MCQs
- ‘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 ?
- The amount of simple interest during ‘n’ interest period is (where, i = interest rate based on the length of one interest period, p = principal) ?
- 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 ?
- 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__________?
- Pick out the wrong statement ?
- Utilities cost in the operation of chemical process plant comes under the ?
- The depreciation during the year ‘n’, in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage ‘N’ to the ?
- If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be __________ percent ?
- Equipment installation cost in a chemical process plant ranges from __________ percent of the purchased equipment cost ?
- Which of the following elements is not included in the scope of market analysis ?
- Most chemical plants use an initial working capital amounting to 10-20% of the total capital investment. But this percentage may increase to __________ percent in case of seasonal products manufacturing plant?
- __________ method for profitability evaluation of a project does not account for investment cost due to land ?
- Which of the following is the costliest material of construction used in pressure vessel construction ?
- The ‘total capital investment’ for a chemical process plant comprises of the fixed capital investment and the__________?
- An investment of Rs. 1000 is carrying an interest of 10% compounded quarterly. The value of the investment at the end of five years will be __________?
- Nominal and effective interest rates are equal, when the interest is compounded__________?
- __________ of depreciation calculation accounts for the interest on investment?
- The payback method for the measurement of return on investment__________?
- Manufacturing cost in a chemical company does not include the__________?
- Functional depreciation of an equipment is the measure of decrease in its value due to its __________?
- Depreciation is __________ in profit with time?
- Effluent treatment cost in a chemical plant is categorised as the __________ cost?
- Gross earning is equal to the total income minus__________?
- In a manufacturing industry, breakeven point occurs, when the__________?
- Cost of instrumentation in a modern chemical plant ranges from __________ percent of the total plant cost?
- Scheduling provides information about the__________?
- ‘Six-tenth factor’ rule is used for estimating the__________?
- The amount of compounded interest during ‘n’ interest periods is__________?
- In financial accounting of a chemical plant, which of the following relationship is invalid ?
- Chemical engineering plant cost index is used for finding the present cost of a particular chemical plant, if the cost of similar plant at some time in the past is known. The present cost of the plant = original cost × (index value at present/ index value at time original cost was obtained). The most major component of this cost index is__________?
- __________ of depreciation calculation does not take into account the interest on investments?
- In an ordinary chemical plant, electrical installation cost may be about __________?
- Which of the following is not a component of working capital ?
- Personnel working in the market research group is responsible for the job of__________?
- Total product cost of a chemical plant does not include the __________ cost?
- If ‘S’ is the amount available after ‘n’ interest periods for an initial principal ‘P’ with the discrete compound interest rate ‘i’, the present worth is given by__________?
- Which of the following is not a component of the fixed capital for a chemical plant facility ?
- 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__________?
- Annual depreciation cost are not constant when, the __________ method of depreciation calculation is used ?
- Annual depreciation costs are constant, when the __________ method of depreciation calculation is used ?
- A present sum of Rs. 100 at the end of one year, with half yearly rate of interest at 10%, will be Rs ?
- Which of the following methods of depreciation calculations results in book values greater than those obtained with straight line method ?
- Effective and nominal interest rates are equal, when the interest is compounded__________?
- In a chemical process plant, the total product cost comprises of manufacturing cost and the__________?
- The __________ of a chemical company can be obtained directly from the balance sheet as the difference between current assets and current liabilities ?
- Factory manufacturing cost is the sum of the direct production cost__________?
- Relative cost of chemical process plants in India is about __________ percent more than the similar plants in U.S.A ?
- The ratio of gross annual sales to the fixed capital investment is termed as the __________ ratio?
- Generally, income taxes are based on the__________?
- ‘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?
- For a given fluid, as the pipe diameter increases, the pumping cost __________?