, bo Practice Session on Depreciation - Part | erro Mees saci Ici POON ee eee ee Lod{he initial cost of completely installed reactor if Rs 60,000 and scrap value at the end of useful life is calculated Rs 10,000. Excluding depreciation cost for reactor, the total annual expenses for the plant are Rs 1,00,000. How many years of useful life should be estimated for reactor if 12% of total annual expenses for the chemical planfdue to cost for reactor depreciation. Straight line method for determining depreciation should be used. A.3 B.4 c.5 D. Does not existfixe Ny eo Ve elok TARYN Ooh co CP Ba D = py Se Ly w Sec ea eared TRThe total capital investment for a chemical plant is Rs 10 x 10° and working capital is 10% of total capital investment. If plant can produce an average of 7500 kg of final product per day during 300 days year. What will be turnover ratio if selling price per kg of product is Rs 4.8Dae et NORTON Tare Oe Ae TSCA OTCNYON U wn ware) (PR icta ars = oa PIR) = _|lon¥ ile" Fike Pad = [.2A petrochemical plant has been proposed, for which annual depreciation costs are estimated to be 10% of fixed capital investment and FCI is 85% of TCI. If rate of return is 25.5% then determine the payout period?tag Pie OSS ee rae OS ae aL pate ee kes Ron = Net tobt _ ..a55 on Na cay eae 9-25gsTlt = (shh Plas —Waleaiay. ay Ce ee ORE ne ; Cash Flee = exe ena U5n~ Payback = ect Pe ees =, mee 7A ectIn a design of chemical plant, following expenditure and revenues are estimated after plant has achieved its desired production. Total initial FCI = 170 Lac WCI = 10 Lac Savage value = 15 Lac Service life = 10 years. Annual profit after tax except depreciation (constant throughout service life) = 42 Lac, interest rate = 10%, tax rate = 35%, straight line depreciation is assumed. Then net present worth (in Lac).Nek ProPit = U2 lekh De (ito-!sILars . eeaee ay ee le (Som | Coan

Oo a a ery ae - ; [<< Ge eh PO Eee. aoe Yee —) ere ee eal NPP aaaNed Mofi't= © 85% _ oroa5 x = = olTx —0:085 % = 0:035% Ce een mea at CPA ae i) eamenas aa ance ai aaaen 2cWhich of the following cost does not come under work ing capital cost? Salary and wages —5 [boxes > AS eo 4 Tax payable Insulation and instalment cost