Engineering Economy problems
- 1. Which one of the following questions is relevant to the construction estimates :
Options- A. Did the estimators precisely evaluate site conditions ?
- B. Did the estimators use short cut methods which may be un realistic in their situation ?
- C. How much money will the contractor's risk, loosing if he Were to submit bid on the raw estimate of cost.
- D. All of these Discuss
Correct Answer: All of these
- 2. The wages of supervisors and material handlers are charged as :
Options- A. Over head
- B. direct labour cost
- C. indirect labour cost
- D. None of these Discuss
Correct Answer: Over head
- 3. If S is the future capital accumulated in n years at the rate of interest i per annum, then present worth is :
Options- A.
- B. S(1 + i)n
- C. S(1 + i)1/n
- D. None of these. Discuss
Correct Answer:
- 4. Pick up the correct statement from the following:
Options- A. The financial ratio summarises some aspect of the firm's financial condition at the time of preparing a balance sheet.
- B. Both the numerator and denominator of financial ratios come directly from the balance sheet.
- C. Income statement ratios compare one 'flow' item from the income statement to another flow item from the income statement.
- D. Income statement ratios compare a flow item from the income statement to another flow item form the income statement
- E. All of these Discuss
Correct Answer: All of these
- 5. Pick up the correct statement from the following:
Options- A. A NPV profile graph shows the curvilinear relationship between the net present value of the project and discount rate employed.
- B. In a NPV profile, if discount rate is zero, then net present value is simply total cash inflows less the total cash outflows of the project.
- C. As the discount rate increases, the net present value profile slopes downward to the right.
- D. All of these Discuss
Correct Answer: All of these
- 6. The ratio of current assests to current liabilities is known as
Options- A. Liquidity ratio
- B. Current ratio
- C. Acid-Test (or Quick) ratio
- D. Debts ratio Discuss
Correct Answer: Current ratio
- 7. The interest calculated on the basis of 365 days a year, is known as :
Options- A. interest
- B. ordinary simple interest
- C. exact simple interest
- D. None of these Discuss
Correct Answer: exact simple interest
- 8. Pick up the correct statement from the following:
Options- A. Ratio analysis is the procedure of determining and interpreting numerical relationship of various items of the financial statement.
- B. All financial ratios are obtained by relating two sets of information contained in a Single financial statement.
- C. The relationship between two accounting figures expressed mathematically, is known as a financial ratio.
- D. All of these Discuss
Correct Answer: All of these
- 9. If interest is paid more than once in a year, i is the rate of interest per year, n is the number of periods in years and m is a number of periods per years, compound amount factor (CAF) is :
Options- A.
- B.
- C.
- D.
Discuss
Correct Answer:
- 10. Both architect and engineer make use of the cost estimate of the project:
Options- A. for site selection
- B. for designing of the project
- C. for choosing alternatives
- D. All of these Discuss
Correct Answer: All of these
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