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  1. Which of the following is the cheaptest material of construction for the storage of sodium hydroxide upto a concentration of 75%?

  2. A.

     Stainless steel

    B.

     Plain carbon steel

    C.

     Nickel

    D.

     Copper

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  3. Out of the following, the depreciation calculated by the __________ method is the maximum.

  4. A.

     Diminishing balance

    B.

     Straight line

    C.

     Sum of the years digit

    D.

     Sinking fund

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  5. Depreciation is __________ in profit with time.

  6. A.

     Decrease

    B.

     Increase

    C.

     No change

    D.

     None of these

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  7. Following the six-tenth factor rule, if a log-log plot of capacity of the equipment vs. cost of the equipment is made, then a straight line is obtained, whose slope is equal to

  8. A.

     0.1

    B.

     0.6

    C.

     0.2

    D.

     0.8

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  9. In a manufacturing industry, break even point occurs, when the

  10. A.

     Total annual rate of production equals the assigned value

    B.

     Total annual product cost equals the total annual sales

    C.

     Annual profit equals the expected value

    D.

     Annual sales equals the fixed cost

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  11. If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be __________ percent.

  12. A.

     10

    B.

     20

    C.

     >20

    D.

     < 20

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  13. The inventory of raw materials included in the working capital is usually about __________ months supply of raw materials valued at delivery prices.

  14. A.

     One

    B.

     Three

    C.

     Six

    D.

     Twelve

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  15. 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 pay back time?

  16. A.

     5 years

    B.

     7 years

    C.

     12 years

    D.

     10 years

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  17. The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is

  18. A.

     15%

    B.

     10%

    C.

     1.5%

    D.

     150%

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  19. For a typical project, the cumulative cash flow is zero at the

  20. A.

     End of the project life

    B.

     Break even point

    C.

     Start up

    D.

     End of the design stage

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