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  • Question
  • If S is the future capital accumulated in n years at the rate of interest i per annum, then present worth is :


  • Options
  • A. If S is the future capital accumulated in n years at the rate of interest i per annum, then present
  • B. S(1 + i)n
  • C. S(1 + i)1/n
  • D. None of these.

  • Correct Answer
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  • Engineering Economy problems


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    • 1. The wages of supervisors and material handlers are charged as :

    • Options
    • A. Over head
    • B. direct labour cost
    • C. indirect labour cost
    • D. None of these
    • Discuss
    • 2. Which one of the following questions is relevant to the construction estimates :

    • Options
    • A. Did the estimators precisely evaluate site conditions ?
    • B. Did the estimators use short cut methods which may be un realistic in their situation ?
    • C. How much money will the contractor's risk, loosing if he Were to submit bid on the raw estimate of cost.
    • D. All of these
    • Discuss
    • 3. The capital Recovery Factor (equal payments) of Capital Recovery Annuity is :

    • Options
    • A.
    • B.
    • C.
    • D. None of these.
    • Discuss
    • 4. The alternatives which are standalone solutions for given situations in engineering involve :

    • Options
    • 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
    • Discuss
    • 5. Which one of the following is included in financial ratios of the firm?

    • Options
    • A. Profitability ratio
    • B. Liquidity ratio
    • C. Turnover ratio
    • D. Ratio of overall performances
    • E. All of these
    • Discuss
    • 6. Pick up the correct statement from the following:

    • Options
    • A. The financial ratio summarises some aspect of the firm's financial condition at the time of preparing a balance sheet.
    • B. Both the numerator and denominator of financial ratios come directly from the balance sheet.
    • C. Income statement ratios compare one 'flow' item from the income statement to another flow item from the income statement.
    • D. Income statement ratios compare a flow item from the income statement to another flow item form the income statement
    • E. All of these
    • Discuss
    • 7. Pick up the correct statement from the following:

    • Options
    • 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
    • Discuss
    • 8. The ratio of current assests to current liabilities is known as

    • Options
    • A. Liquidity ratio
    • B. Current ratio
    • C. Acid-Test (or Quick) ratio
    • D. Debts ratio
    • Discuss
    • 9. The interest calculated on the basis of 365 days a year, is known as :

    • Options
    • A. interest
    • B. ordinary simple interest
    • C. exact simple interest
    • D. None of these
    • Discuss
    • 10. Pick up the correct statement from the following:

    • Options
    • A. Ratio analysis is the procedure of determining and interpreting numerical relationship of various items of the financial statement.
    • B. All financial ratios are obtained by relating two sets of information contained in a Single financial statement.
    • C. The relationship between two accounting figures expressed mathematically, is known as a financial ratio.
    • D. All of these
    • Discuss


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