A project construction cost estimate includes: the labour and material cost the

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Question
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

Correct Answer

All of these

Engineering Economy problems

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1. 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

2. 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

4. 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.

5. 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

6. 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

7. 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

8. 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.

9. Pick up the correct statement from the following:
Options
A. The difference between sales revenue and cost of goods sold, is known as 'Gross Profit.'
B. The gross profit percentage is the average profit margin obtained on goods sold.
C. The relationship of contribution to sales is known as contribution ratio
D. The difference between sales and variable cost of sales, is called contribution.
E. All of these

10. Renu Bala deposits Rs 1200 now, Rs 800 two years from now and Rs 1000 five years from now. If the savings bank's rate of interest in 5%, she will receive an amount of Rs X 10 years from now, where X is
Options
A. Rs 3415
B. Rs 4225
C. Rs 4413
D. Rs 4826

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