The person desires to pay off the amount in 10 equal annual instalments. The amo

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Question
The person desires to pay off the amount in 10 equal annual instalments. The amount of each instalment is :
Options
A. Rs 5638
B. Rs 6638
C. Rs 7738
D. None of these

Correct Answer

Rs 5638

Engineering Economy problems

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1. Pick up the correct method adopted for developing the approximate or conceptual estimates from the following :
Options
A. Base unit method
B. Cost per function method
C. Cost per square metre
D. Cost per linear unit
E. All of these

2. In the cash flow diagram shown in the given figure
Options
A. The first disbursement occurs at the end of year 2
B. The second disbursement occurs at the end of year 4
C. The first receipt occurs at the end of year 1
D. The second receipt occurs at the end of year 3
E. All of these

3. Liquidity ratios are used :
Options
A. to measure a firms ability to meet short-cut obligations.
B. to compare short term obligations to short-term resources available to meet these obligations.
C. to obtain much insight into the present cash solvency of the firm and the firm's ability to remain solvent in the event of adversity.
D. All of these

7. Pick up the correct statement from the following:
Options
A. Engineering economy is a collection of mathematical techniques which simplify economic comparisons
B. Engineering economy is a decision assistance tool by which one method will be chosen as the most economically one.
C. For understanding the engineering economy, one should be able to classify the basic terminology and fundamental concepts of economy.
D. All of these.

8. Pick up the correct statement regarding financial statement analysis from the following.
Options
A. Final analysis always involves the use of various financial statements i.e., balance sheet and income statement.
B. The balance sheet is the summary of assests, liabilities and owner's equity of business at a point in time.
C. The income statement is the summary of revenues and expenses of a firm over a particular period of time.
D. All the above

9. Pick up the correct statement from the following:
Options
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

10. Which method is adopted to develop an approximate or conceptual estimate for perimeter works for buildings from the following:
Options
A. Base unit method
B. Cost per function method
C. Cost per square metre method
D. Cost per cubic metre method
E. Cost per linear metre method

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