Engineering Economics MCQ Questions & Answers

71

What refers to the ratio of the interest payment to the principal for a given unit of time and usually expressed as a percentage of the principal?

A) Return of investment B) Interest rate C) Yield D) Rate of return

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Answer: Option B

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72

First Benchmark Publishing’s gross margin is 50% of sales. The operating costs of the publishing are estimated at 15% of sales. If the company is within the 40% tax bracket, determine the percent of sales is their profit after taxes?

A) 21 % B) 20 % C) 19 % D) 18 %

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Answer: Option A

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73

The construction estimate of a project is used by:

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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Answer: Option D

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74

Pick up the correct statement regarding financial statement analysis from the following.

A) Final analysis always involves the use of various financial statements i.e., balance sheet and income statement B) The balance sheet is the summary of assets, liabilities and owner's equity of business at a point in time C) The income statement is the summary of revenues and expenses of a firm over a particular period of time D) All the above

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Answer: Option D

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75

Pick up the correct statement from the following:

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

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Answer: Option D

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76

Pick up the correct statement from the following:

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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Answer: Option D

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77

Pick up the correct method adopted for developing the approximate or conceptual estimates from the following:

A) Base unit method B) Cost per function method C) Cost per square metre D) All of these

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Answer: Option D

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78

Pick up the element of the cost from the following:

A) Direct material B) Direct labour C) Over head D) All of these

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Answer: Option D

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79

Pick up the correct statement from the following:

A) Engineering economy is a collection of mathematical techniques which simplify economic comparisons B) Engineering economy is a decision assistance tool by which one method will be chosen as the most economically one C) For understanding the engineering economy, one should be able to classify the basic terminology and fundamental concepts of economy D) All of these

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Answer: Option D

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80

Pick up the ratio which gives us sufficient information by which to judge the financial condition and performance of the firm, from the following:

A) Liquidity ratio B) Financial leverage ratio C) Activity ratio D) None of these

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Answer: Option D

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Engineering Economics MCQ Questions & Answers | Civil Engineering