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:
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| 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:
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| 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:
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| 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:
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| 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:
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