Engineering Economics Multiple Choice Questions

Engineering Economics

Question 1.

The CRF (ep) is also known as: [CRF(EP) - 8% - 7], where

A.

 8% is the rate of interest per year

B.

 Money is borrowed for n = 7 years

C.

 Both (A) and (B)

D.

 Neither (A) nor (B)

Explanation :

Explanation Not Provided

Question 2.

A form of business organization in which a person conducts his business alone and entirely for his own profit, being solely responsible for all its activities and liabilities.

A.

 Sole proprietorship

B.

 Entrepreneurship

C.

 Partnership

D.

 Corporation

Explanation :

Explanation Not Provided

Question 3.

A man loans P 187,400 from a bank with interest at 5% compounded annually. He agrees to pay his obligations by paying 8 equal annual payments, the first being due at the end of 10 years. Find the annual payments.

A.

 P 43,600.10

B.

 P 43,489.47

C.

 P 43,263.91

D.

 P 43,763.20

Explanation :

Explanation Not Provided

Question 4.

Keeping in view, the feasibility order of magnitude, the preliminary, conceptual or budget estimates, are prepared by:

A.

 Architect/engineer

B.

 Construction manager

C.

 Owner himself/herself

D.

 Construction manager

Explanation :

Explanation Not Provided

Question 5.

What is the reduction in the money value of capital asset is called?

A.

 Capital expenditure

B.

 Capital loss

C.

 Loss

D.

 Deficit

Explanation :

Explanation Not Provided