Civil Engineering - Engineering Economy

Exercise :: Engineering Economy - Section 1

46. 

Pick up the correct statement from the following:

A. A NPV profile graph shows the curvilinear relationship between the net present value of the project and discount rate employed.
B. In a NPV profile, if discount rate is zero, then net present value is simply total cash inflows less the total cash outflows of the project.
C. As the discount rate increases, the net present value profile slopes downward to the right.
D. All of these

Answer: Option D

Explanation:

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47. 

The project contractor relies on the cost of the estimate :

A. for submission of a competitive bid for a lumpsum contract
B. for a unit price contract
C. for preparation of a definitive estimate to help negotiate contract.
D. All of these

Answer: Option D

Explanation:

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48. 

The wages of supervisors and material handlers are charged as :

A. Over head
B. direct labour cost
C. indirect labour cost
D. None of these

Answer: Option A

Explanation:

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49. 

The CRF (ep) is also known as: [CRF(EP) - 8% - 7], where

A. 8% is the rate of interest per year
B. money is borrowed for n = 7 years
C. both (a) and (b)
D. Neither (a) nor (b)

Answer: Option C

Explanation:

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50. 

Annuities involve:

A. a series of payments
B. all payments of equal amount
C. payment at equal time intervals
D. payments at the end of periods.
E. All of these

Answer: Option E

Explanation:

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