Civil Engineering - Engineering Economy
Exercise :: Engineering Economy - Section 2
6. |
The owner of the construction company makes use of the estimate : |
A. |
to determine the capital investment costs. | B. |
to assist in financial arrangements | C. |
to determine economic feasibility of the project. | D. |
to determine the tax, insurance and evaluation purpose. | E. |
All of these |
Answer: Option E
Explanation:
|
7. |
Which one of the following is not a construction estimate ? |
A. |
Initial feasibility estimate | B. |
Conceptual preliminary budget | C. |
Definite estimate | D. |
None of these |
Answer: Option D
Explanation:
|
8. |
Pick up the correct statement from the following: |
A. |
Uniform series compound amount factor =  | B. |
Uniform series present worth factor =  | C. |
Sinking fund factor =  | D. |
Capital recovery factor = where letters carry their usual meanings. | E. |
All of these |
Answer: Option E
Explanation:
|
9. |
Pick up the method used for project evaluation and selection in capital budgetting from the following: |
A. |
pay back period | B. |
Internal ratio of return | C. |
Net present worth | D. |
Profitability index | E. |
All the above |
Answer: Option E
Explanation:
|
10. |
Pick up the correct statement from the following: |
A. |
The ratio of current assests, loans and advances, and the current liquidity is called current ratio. | B. |
Larger the current ratio, larger is the margin of safety. | C. |
The operating profit is the difference between gross profit and operating expenses. | D. |
All of these |
Answer: Option D
Explanation:
|