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Civil Engineering :: Engineering Economy

  1. The sunk costs include :

  2. A.
    a past expenditure
    B.
    an unrecovered balance
    C.
    an invested capital that cannot be retreived
    D.
    All of these

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  3. Current assests less inventories divided by current liabilities is known as

  4. A.
    Liquidity ratio
    B.
    Current ratio
    C.
    Acid-Test (or Quick) ratio
    D.
    Debts ratio

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  5. Which one of the following statements is correct?

  6. A.
    The number of years required to recover the initial cash investment in a project, is called Pay Back period (PBP).
    B.
    The discount rate that equates the present value of the expected Net Cash Flows (CFs) with the Initial Cash Outflow (ICO) is known as internal rate of return.
    C.
    The present value of the proposal's net cash flows, less the proposal's initial cash outflow is known as the Net Present Value (NPV)
    D.
    All of these

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  7. The alternatives which are standalone solutions for given situations in engineering involve :

  8. A.
    a purchase cost (first cost)
    B.
    the anticipated life of the assest
    C.
    the yearly costs of maintaining the assest (annual maintenance and operating cost)
    D.
    the anticipated resaleable value (salvage value) and the interest return (rate of return)
    E.
    All of these

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  9. The ratio of current assests to current liabilities is known as

  10. A.
    Liquidity ratio
    B.
    Current ratio
    C.
    Acid-Test (or Quick) ratio
    D.
    Debts ratio

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  11. Pick up the correct statement from the following:

  12. A.
    An annuity is a series of equal payments occurring at equal period of time.
    B.
    Annuity is called an equal payment or uniform payment series.
    C.
    An annuity may have periods of time of any length but should always be of equal length.
    D.
    All the above.

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  13. The construction estimate of a project is used by :

  14. A.
    the owner of the facility
    B.
    the consulting architect/engineer
    C.
    the contractor of the project
    D.
    All of these

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  15. Both architect and engineer make use of the cost estimate of the project:

  16. A.
    for site selection
    B.
    for designing of the project
    C.
    for choosing alternatives
    D.
    All of these

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  17. If a is the base amount expenditure, b is the increase in the operation cost each year over a period of n years, the total cost of maintenance is :

  18. A.
    a + (n + 1) b
    B.
    a + (n - 1) b
    C.
    a x (n - 1) b
    D.
    a - (n - 1) b

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  19. The more critical (or severe) test of the firm's liquidity can be judged by :

  20. A.
    Liquidity ratio
    B.
    Current ratio
    C.
    Acid-Test (or Quick) ratio
    D.
    Debts ratio

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