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  • Question
  • Pick up the correct statement from the following:


  • Options
  • A. The capital required to get a project started is the first cost.
  • B. The first cost is a single cash flow or a series of cash flows that are made in the beginning of the activity's life span
  • C. The first cost of purchasing a car is the sum of the down payment, taxes and dealers charges.
  • D. All of these

  • Correct Answer
  • All of these 


  • Engineering Economy problems


    Search Results


    • 1. Pick up the main purpose of project cost control from the following :

    • Options
    • A. To signal immediate warning of uneconomic operations
    • B. To provide a feed back to the estimator
    • C. To promote cost consciousness
    • D. All of these
    • Discuss
    • 2. 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
    • Discuss
    • 3. 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
    • Discuss
    • 4. 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
    • Discuss
    • 5. 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.
    • Discuss
    • 6. The financial analysis :

    • Options
    • A. helps a share holder to compare the expected return on his investment in the firm against the expected return from other alternative investment.
    • B. helps a bank to know the financial position of the firm for granting a loan to the firm.
    • C. helps to judge the success of the firm's financial plans.
    • D. All of these.
    • Discuss
    • 7. Which one of the following is not a construction estimate?

    • Options
    • A. Initial feasibility estimate
    • B. Conceptual preliminary budget
    • C. Definite estimate
    • D. None of these
    • Discuss
    • 8. Pick up the method used for project evaluation and selection in capital budgetting from the following:

    • Options
    • A. pay back period
    • B. Internal ratio of return
    • C. Net present worth
    • D. Profitability index
    • E. All the above
    • Discuss
    • 9. Pick up the correct statement from the following:

    • Options
    • 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
    • Discuss
    • 10. A project construction cost estimate includes:

    • Options
    • A. the labour and material cost
    • B. the equipment and over head cost
    • C. the profit of the contractor
    • D. All of these
    • Discuss


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