Capital Investment Quiz

What primarily constitutes Total Capital Investment (TCI)?

• FCI + WC

• FCI only

• WC only

• Land cost

Working Capital (WC) funds which operational need?

• Equipment purchase

• Day-to-day liquidity

• Land acquisition

• Contractor fees

Which cost fluctuates directly with production volume?

• Fixed Costs

• Depreciation

• Variable Costs

• Insurance premiums

Bare Module Cost includes what beyond equipment price?

• Marketing expenses

• Installation labor/materials

• Executive salaries

• Land grading

The Lang Factor estimates which cost quickly?

• Working Capital

• Fixed Capital Investment

• Raw material costs

• Utility expenses

Depreciation expense primarily accounts for:

• Raw material waste

• Asset wear/tear

• Energy consumption

• Labor overtime

Break-even analysis determines the production level where:

• Revenue = Total Costs

• NPV = 0

• ROI = 100%

• WC = FCI

Direct expenses in manufacturing include:

• Raw materials

• IT costs

• R&D expenses

• Legal fees

Service Facilities (OSBL) are typically estimated as a % of:

• Working Capital

• ISBL costs

• Land value

• Start-up expenses

Contingency charges in FCI cover:

• Routine maintenance

• Unforeseen project changes

• Raw material inventory

• Product shipping