Engineering Economy - Section 1 (5)

Directions to Solve

Engineering Economy - Section 1

This is the branch of engineering in which we study about
economy. There are problems available to solve in this section. You can give test and solve these
MCQs.

33.

The construction estimate of a project is used by :

A.	the owner of the facility
B.	the consulting architect/engineer
C.	the contractor of the project
D.	All of these

Answer: Option D

Explanation:

No answer description available for this question. Let us discuss.

34.

Pick up the correct statement from the following :

A.	An annuity is a series of equal payments occurring at equal period of time.
B.	Annuity is called an equal payment or uniform payment series.
C.	An annuity may have periods of time of any length but should always be of equal length.
D.	All the above.

Answer: Option D

Explanation:

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35.

The ratio of current assests to current liabilities is known as

A.	Liquidity ratio
B.	Current ratio
C.	Acid-Test (or Quick) ratio
D.	Debts ratio

Answer: Option B

Explanation:

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36.

The alternatives which are standalone solutions for given situations in engineering involve :

A.	a purchase cost (first cost)
B.	the anticipated life of the assest
C.	the yearly costs of maintaining the assest (annual maintenance and operating cost)
D.	the anticipated resaleable value (salvage value) and the interest return (rate of return)
E.	All of these

Answer: Option E

Explanation:

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37.

Which one of the following statements is correct?

A.	The number of years required to recover the initial cash investment in a project, is called Pay Back period (PBP).
B.	The discount rate that equates the present value of the expected Net Cash Flows (CFs) with the Initial Cash Outflow (ICO) is known as internal rate of return.
C.	The present value of the proposal's net cash flows, less the proposal's initial cash outflow is known as the Net Present Value (NPV)
D.	All of these

Answer: Option D

Explanation:

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38.

Current assests less inventories divided by current liabilities is known as

A.	Liquidity ratio
B.	Current ratio
C.	Acid-Test (or Quick) ratio
D.	Debts ratio

Answer: Option C

Explanation:

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39.

The sunk costs include :

A.	a past expenditure
B.	an unrecovered balance
C.	an invested capital that cannot be retreived
D.	All of these

Answer: Option D

Explanation:

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40.

The estimate based on a detailed quantity survey and furnishes the most accurate and reliable estimate possible is known as

A.	Conceptual estimate
B.	Definitive estimate
C.	Probabilistic estimate
D.	None of these

Answer: Option B

Explanation:

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