5 years
7 years
12 years
10 years
✅ The correct answer is option B.
Plant Economics MCQs
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.
300
600
800
1000
✅ The correct answer is option C.
Factory manufacturing cost is the sum of the direct production cost
fixed charges and plant overhead cost.
and plant overhead cost.
plant overhead cost and administrative expenses.
none of these.
✅ The correct answer is option A.
The amount of compounded interest during ‘n’ interest periods is
p[(1+i)n-1)]
p(1 + i)n
p(1 – i)n
p(1 + in)
✅ The correct answer is option A.
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
decreases
increases
increases linearly
remains constant
✅ The correct answer is option A.
Functional depreciation of an equipment is the measure of decrease in its value due to its
ageing
wear and tear
obsolescence
breakdown or accident
✅ The correct answer is option C.
The ‘total capital investment’ for a chemical process plant comprises of the fixed capital investment and the
overhead cost
working capital
indirect production cost
direct production cost
✅ The correct answer is option B.
__________ of depreciation calculation does not take into account the interest on investments.
Present worth method
Sinking fund method
Sum of the years-digits method
all (a), (b) and (c)
✅ The correct answer is option C.
Cost incurred towards __________ in a chemical plant is a component of the utilities cost.
water supply
running a control laboratory
property protection
medical services
✅ The correct answer is option A.
Equipment installation cost in a chemical process plant ranges from __________ percent of the purchased equipment cost.
10 to 20
35 to 45
55 to 65
70 to 80
✅ The correct answer is option B.