Pick up the method used for project evaluation and selection in capital budgetti

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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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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.

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

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

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

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

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

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

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.

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