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  • Question
  • 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

  • Correct Answer
  • All the above 


  • Engineering Economy problems


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    • 1. 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
    • 2. 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
    • 3. 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
    • Discuss
    • 4. 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
    • 5. 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
    • 6. 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
    • 7. 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
    • 8. Keeping in view, the feasibility order of magnitude, the preliminary, conceptual or budget estimates, are prepared by :

    • Options
    • A. architect/engineer
    • B. construction manager
    • C. owner himself/herself
    • D. construction manager
    • E. None of these
    • Discuss
    • 9. The owner of the construction company makes use of the estimate :

    • Options
    • 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
    • Discuss
    • 10. Pick up the correct statement from the following:

    • Options
    • A. The receipts and disbursements in a given time interval are referred to as cash flow.
    • B. The assumptions that all cash flows occur at the end of the interest period, is known as the end of period convention.
    • C. A cash flow diagram is a graphical representation of cash flows drawn on a time scale.
    • D. The cash flow diagram represents the statement of the problem and also includes what is given and what is to be found.
    • E. All of the above.
    • Discuss


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