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Mine Economics MCQs Questions & Answers | Mining Engineering

Learn and practice multiple-choice questions (MCQs) with answers related to Mine Economics. These resources are available for mining engineering students who wish to clear GATE exams, technical interviews, competitive examinations, and other entrance exams. The Mine Economics chapter is particularly important for students studying mining engineering. Page-2 section-1

11
In a mine site, the cost of shaft sinking in lakhs of rupees is given as 2.64D + 34.8, where D is the shaft depth in m. In the same site, the corresponding cost of driving an incline is 0.96 L, where L is the length of the incline in m. Assuming L by D ratio is 3.0, the depth in m beyond which the shaft sinking becomes more economical is
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Answer & Solution
Answer: Option C
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12
An investment of Rs. 10,000, compounded annually, is estimated to return Rs. 20,000 after 6 years from the date of investment. The expected rate of return on this investment in percentage is
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Answer & Solution
Answer: Option C
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13
A company invested Rs. 4 lakhs in a machine. The net income expected from the operation of the machine is Rs. 80,000 per annum. The payback period for the machine in years is
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Answer & Solution
Answer: Option A
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14
The net present value of Rs. 400 at the end of 5 years at 10% discount rate is
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Answer & Solution
Answer: Option C
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15
A firm, having a cost of capital of 12%, evaluates a small mining project of initial investment of Rs. 100 lakhs. For the benefits shown in the table below, the benefit-cost ratio of the project is
Year 1 2 3 4
Benefits (Rs. in lakhs) 25 40 40 50
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Answer & Solution
Answer: Option B
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16
A company producing bearing plates for rock bolts has the selling price Rs. 20/unit and the variable cost has Rs. 12/unit. If the total fixed cost is Rs. 5,60,000, then the break even output units of bearing plates is
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Answer & Solution
Answer: Option D
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17
As per DCF analysis a project report is acceptable if
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Answer & Solution
Answer: Option B
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18
A mining company is considering the following project:
Cash Flows (Rs.) for five years
Year 0 1 2 3 4 5
Net Cash Flow In (Rs.) -50000 15000 15000 15000 15000 15000
What is the project's IRR?
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Answer & Solution
Answer: Option D
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19
A mining equipment has a life of 5 years with no salvage value. Assuming that the depreciation of the equipment is calculated by the straight line method, the average annual value of the equipment percentage of its original value is
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Answer: Option A
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20
What will be the effective rate of interest for nominal rate of interest 10%, when money is compounded quarterly?
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Answer & Solution
Answer: Option A
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