41.If an amount R is paid at the end of every year for 'n' years, then the net present value of the annuity at an interest rate of i is
R [{(1 + i)n - 1}/ i ]
R [{(1 + i)n - 1}/ i (1 + i)n]
R(1 + i)n
R/(1 + i)n
Correct answer: (B)
R [{(1 + i)n - 1}/ i (1 + i)n]
42.If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be _________ percent.
10
20
> 20
< 20
Correct answer: (D) < 20
43.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
Correct answer: (A) General expenses
44.In a manufacturing industry, breakeven point occurs, when the
Total annual rate of production equals the assigned value
Total annual product cost equals the total annual sales
Annual profit equals the expected value
Annual sales equals the fixed cost
Correct answer: (B) Total annual product cost equals the total annual sales
45.In an ordinary chemical plant, electrical installation cost may be about
10-15% of purchased equipment cost
3-10% of fixed capital investment
Either (A) or (B)
Neither (A) nor (B)
Correct answer: (C) Either (A) or (B)
46.In declining balance method of depreciation calculation, the
Value of the asset decreases linearly with time
Annual cost of depreciation is same every year
Annual depreciation is the fixed percentage of the property value at the beginning of the particular year
None of these
Correct answer: (C) Annual depreciation is the fixed percentage of the property value at the beginning of the particular year
47.In financial accounting of a chemical plant, which of the following relationship is invalid?
Assets = equities
Assets = liabilities + net worth
Total income = costs + profits
Assets = capital
Correct answer: (D) Assets = capital
48.In which of the electric power generation system, the operating cost is minimum?
Thermal
Nuclear
Hydroelectric
Fast breeder reactor
Correct answer: (C) Hydroelectric
49.Manufacturing cost in a chemical company does not include the
Fixed charges
Plant overheads
Direct products cost
Administrative expenses
Correct answer: (D) Administrative expenses
50.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.