Question

The ratio of working capital to total capital investment for most chemical plants (except for non-seasonal based products) is in the range of ______ percent.

• A. 10 to 20
• B. 1 to 2
• C. 0.1 to 1
• D. 50 to 60

Hint:

Working capital is essential for day-to-day operations and is generally a small fraction of total investment.

Answer 1

The Correct Option is A

For most chemical plants, the working capital is typically 10 to 20 percent of the total capital investment. This allows for smooth operation and covers costs such as raw materials, labor, and utilities before revenues are received.