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Capital Investment Quiz

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

What primarily constitutes Total Capital Investment (TCI)?

a)

FCI + WC

b)

FCI only

c)

WC only

d)

Land cost

2.

Working Capital (WC) funds which operational need?

a)

Equipment purchase

b)

Day-to-day liquidity

c)

Land acquisition

d)

Contractor fees

3.

Which cost fluctuates directly with production volume?

a)

Fixed Costs

b)

Depreciation

c)

Variable Costs

d)

Insurance premiums

4.

Bare Module Cost includes what beyond equipment price?

a)

Marketing expenses

b)

Installation labor/materials

c)

Executive salaries

d)

Land grading

5.

The Lang Factor estimates which cost quickly?

a)

Working Capital

b)

Fixed Capital Investment

c)

Raw material costs

d)

Utility expenses

6.

Depreciation expense primarily accounts for:

a)

Raw material waste

b)

Asset wear/tear

c)

Energy consumption

d)

Labor overtime

7.

Break-even analysis determines the production level where:

a)

Revenue = Total Costs

b)

NPV = 0

c)

ROI = 100%

d)

WC = FCI

8.

Direct expenses in manufacturing include:

a)

Raw materials

b)

IT costs

c)

R&D expenses

d)

Legal fees

9.

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

a)

Working Capital

b)

ISBL costs

c)

Land value

d)

Start-up expenses

10.

Contingency charges in FCI cover:

a)

Routine maintenance

b)

Unforeseen project changes

c)

Raw material inventory

d)

Product shipping

11.

What does TCI stand for?

a)

Time-Cost Impact

b)

Tangible Cost Index

c)

Total Capital Investment

d)

Technical Cost Input

12.

Which formula gives TCI?

a)

PE x Lang

b)

FCI + WC

c)

PE + BM

d)

WC - FCI

13.

Which is a direct cost in FCI?

a)

Piping

b)

Contingency

c)

Start-up

d)

Supervision

14.

In Bare Module, BM = FOB × ?

a)

Margin

b)

Contingency

c)

Overhead

d)

Factor

15.

Typical Lang Factor for a new unit is about:

a)

0.15

b)

2.8

c)

5.0

d)

1.0

16.

Working Capital is typically what % of TCI?

a)

80-90%

b)

40-70%

c)

5-10%

d)

10-20%

17.

Straight-line depreciation charges the same each:

a)

Day

b)

Month

c)

Year

d)

Quarter

18.

NPV compares PV of inflows to:

a)

Revenue

b)

Operating Cost

c)

Initial Investment

d)

Salvage Value

19.

ROI is defined as:

a)

Cash x Rate

b)

Provit / Investment

c)

PV - FCI

d)

WC ÷ TCI

20.

Which cost rises as output rises?

a)

Variable

b)

Fixed

c)

Overhead

d)

Indirect