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Principles Of Engineering: Economics

Subject : engineering
Instructions:
  • Answer 21 questions in 15 minutes. 2 minutes extra for reading the instructions.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Select the preferred investment






2. Define the planning horizon






3. Money has a time value






4. To move money forward one time unit - MULTIPLY by one plus the discount or interest rate






5. Money should continue to be invested as long as each additional increment of investment yields a return that is greater than the investor's time value of money






6. Past costs are irrelevant in engineering economic analyses - unless they impact future costs






7. Perform supplementary analyses






8. Consider only differences in cash flows among investment alternatives






9. Estimate the cash flows






10. Two investment alternatives are equivalent if they have the same economic worth






11. Money has a time value






12. Compare the alternatives






13. Choose the mutually exclusive investment alternative that maximizes economic worth






14. Risks and returns tend to be positively correlated






15. To move money backward one time unit - DIVIDE by one plus the discount or interest rate






16. Compare investment alternatives over a common period of time






17. Money cannot be added or subtracted unless it occurs at the same point(s) in time






18. Identify the investment alternatives






19. Marginal revenue must exceed marginal cost






20. Make investments that are economically justified






21. Specify the discount rate






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