Civil Engineering - Engineering Economy

Exercise :: Engineering Economy - Section 1

11. 

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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12. 

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

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13. 

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

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14. 

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

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15. 

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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