Question: ‘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 ?

• 1. 1.2 to 1.4
• 2. 2.5 to 2.7
• 3. 4.2 to 4.4
• 4. 6.2 to 6.4

Question: ‘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____________________?

• 1. (P – S)/n
• 2. 1 – (P/S)1/m
• 3. (m/n) (P – S)
• 4. 2 (n – m + 1)/n(n + 1). (P – S)

Question: The economic life of a large chemical process plant as compared to a small chemical plant is_______________?

• 1. Only slightly more
• 2. Much more
• 3. Slightly less
• 4. Almost equal

Question: 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 ?

• 1. 15000
• 2. 16105
• 3. 18105
• 4. 12500

Question: Out of the following, the depreciation calculated by the _____________ method is the maximum?

• 1. Diminishing balance
• 2. Straight line
• 3. Sum of the years digit
• 4. Sinking fund

Question: 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______________?

• 1. 300
• 2. 600
• 3. 800
• 4. 1000

Question: “Break-even point” is the point of intersection of_____________________?

• 1. Fixed cost and total cost
• 2. Total cost and sales revenue
• 3. Fixed cost and sales revenue
• 4. None of these

Question: Fixed charges for a chemical plant does not include the____________________?

• 1. Interest on borrowed money
• 2. Rent of land and buildings
• 3. Property tax, insurance and depreciation
• 4. Repair and maintenance charges

Question: According to six-tenths-factor rule, if the cost of a given unit at one capacity is known, then the cost of similar unit with ” times the capacity of the first unit is approximately equal to _____________ times the cost of the initial unit?

• 1. n
• 2. n0.6
• 3. n0.4
• 4. √n

Question: A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual interest rate is 10%. The original cost of the reactor was Rs. 80000. The book value of the reactor after 5 years using sinking fund depreciation met

• 1. 40,096
• 2. 43,196
• 3. 53,196
• 4. 60,196