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- Question
The construction estimate of a project is used by :
Options- A. the owner of the facility
- B. the consulting architect/engineer
- C. the contractor of the project
- D. All of these
- Correct Answer
- All of these
- 1. Present worth Annuity (PWA) is generally known as
Options- A. Premium annuities
- B. Income annuities
- C. Future annuities
- D. All of these Discuss
- 2. If a is the base amount expenditure, b is the increase in the operation cost each year over a period of n years, the total cost of maintenance is :
Options- A. a + (n + 1) b
- B. a + (n - 1) b
- C. a x (n - 1) b
- D. a - (n - 1) b Discuss
- 3. Ratio analysis of a construction firm is used for analysis by :
Options- A. share holders
- B. firm's management
- C. Banks of the firm
- D. financial analysts
- E. All of these. Discuss
- 4. Both architect and engineer make use of the cost estimate of the project:
Options- A. for site selection
- B. for designing of the project
- C. for choosing alternatives
- D. All of these Discuss
- 5. If interest is paid more than once in a year, i is the rate of interest per year, n is the number of periods in years and m is a number of periods per years, compound amount factor (CAF) is :
Options- A.
- B.
- C.
- D.
Discuss
- 6. A construction estimate is used
Options- A. to judge tentatively or approximate value of the project
- B. to produce a statement of the approximate cost
- C. to decide an approximation of the value of the project and not the exact cost.
- D. None of these Discuss
- 7. In a cash-flow diagram :
Options- A. Time 0 is considered to be the present
- B. Time 1 is considered to be the end of time period 1
- C. A vertical arrow pointing up indicates a positive cash flow
- D. An arrow pointing downward indicates a negative cash flow
- E. All of these Discuss
- 8. Pick up the correct statement from the following:
Options- A. The capital required to get a project started, is called first cost.
- B. The costs associated with a new or existing project that remain unaffected by the changes in activity level over the normal range of operation of the project, are called fixed costs.
- C. The group of costs that vary proportionately to the changes in the activity level of a new or existing project are called variable costs.
- D. All of these Discuss
- 9. The product of CAF (S P) and PWF (S P) is:
Options- A. 1/2
- B. 1
- C. 1/3
- D. 1/4 Discuss
- 10. Which one of the following definitions, is correct?
Options- A. The ratio of total debt to share holder's equity is called 'debt ratio'.
- B. The ratio debt-to-total assests is called Debt-to-total assest ratio.
- C. The ratio of earnings before interest and taxes for a particular reporting period to the amount of interest charges for the period, is called interest coverage ratio.
- D. All of these Discuss
Engineering Economy problems
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Correct Answer: All of these
Correct Answer: a + (n - 1) b
Correct Answer: financial analysts
Correct Answer: All of these
Correct Answer:
Correct Answer: to decide an approximation of the value of the project and not the exact cost.
Correct Answer: All of these
Correct Answer: All of these
Correct Answer: 1
Correct Answer: All of these
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