21. Accumulated sum at the end of 5 years, if Rs. 10000 is invested now at 10% interest per annum on a compound basis is Rs.
15000
16105
18105
12500
✅ The correct answer is option B.
Plant Economics MCQs
22. Effective and nominal interest rates are equal, when the interest is compounded
annually
fortnightly
monthly
half-yearly
✅ The correct answer is option A.
23. 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
1000 (1 + 0.1)20
✅ The correct answer is option A.
24. Maximum production start up cost for making a chemical plant operational is about __________ percent of the fixed capital cost.
1
5
10
30
✅ The correct answer is option C.
25. ‘Six-tenth factor’ rule is used for estimating the
equipment installation cost.
equipment cost by scaling.
cost of piping.
utilities cost.
✅ The correct answer is option B.
26. Which of the following methods of depreciation calculations results in book values greater than those obtained with straight line method ?
Multiple straight line method
Sinking fund method
Declining balance method
Sum of the years digit method
✅ The correct answer is option B.
27. The economic life of a large chemical process plant as compared to a small chemical plant is
only slightly more
much more
slightly less
almost equal
✅ The correct answer is option B.
28. 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
manufacturing cost.
depreciation by sinking fund method.
discrete compound interest.
cash ratio.
✅ The correct answer is option B.
29. Nominal and effective interest rates are equal, when the interest is compounded
quarterly
semi-annually
annually
in no case, they are equal
✅ The correct answer is option C.
30. In a chemical process plant, the total product cost comprises of manufacturing cost and the
general expenses
overhead cost
R & D cost
none of these
✅ The correct answer is option A.