### Chemical Engineering Plant Economics

11.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
800

12.A present sum of Rs. 100 at the end of one year, with half yearly rate of interest at 10%, will be Rs.

1. 121
2. 110
3. 97
4. 91
121

13.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 method will be Rs.

1. 40096
2. 43196
3. 53196
4. 60196
60196

14.A series of equal payments (e.g., deposit or cost) made at equal intervals of time is known as

1. Perpetuity
2. Capital charge factor
3. Annuity
4. Future worth
Annuity

15.A shareholder has _________ say in the affairs of company management compared to a debenture holder.

1. More
2. Less
3. Same
4. No
More

16.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

n0.6

17.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
16105

18.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

1. Manufacturing cost
2. Depreciation by sinking fund method
3. Discrete compound interest
4. Cash ratio
Depreciation by sinking fund method

19.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?

1. 5 years
2. 7 years
3. 12 years
4. 10 years
7 years

20.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

1. 1000 (1 + 0.1/4)20
2. 1000 (1 + 0.1)20
3. 1000 (1 + 0.1/4)5
4. 1000 (1 + 0.1/2)5

1000 (1 + 0.1/4)20

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