Concepts in Engineering Economics

Please refer attached file for complete details.

1. The value of P (The present worth) is most nearly
$ 367
$ 371
$ 377
$ 386

2. The value of P (the present worth) is most nearly:
$80
$83
$85
$89

3. The value of Q is most nearly
$193
$243
$258
$272

4. The present value, P is most nearly:
$265
$275
$290
$305

5. (Be careful with the time line.) The value of P is most nearly
$ 1640
$ 1670
$ 1690
$ 1710

6. Consider the following Cash Flow table for questions 6 - 8...
Year Cash Flow
0 - 30,000
1 + 10,000
2 + 10,000
3 + 20,000
4 + 20,000
5 - 5,000
The interest rate is 10 %

The Present Worth of costs is most nearly
$ 29,100
$ 31,400
$ 33,100
$ 34,400

7. The Present Worth of Benefits is most nearly
$44,200
$44,600
$45,100
$46,000

8. The Net Present Worth is most nearly
$ 12,300
$ 12,600
$ 12,900
$ 13,300

9. The correct Analysis Period is:
10 years
15 years
30 years
150 years

10. The Present Worth (PW) of the cost (- Installed cost and operating cost + Salvage value) of Westinghome is most nearly
- $ 87,400
- $ 92,700
- $ 93,600
- $ 95,100

11. The Present Worth (PW) of the cost ( -Installed cost and operating cost + Salvage Value) of Itis is most nearly:
- $ 92,500
- $ 92,700
- $ 94,600
- $ 95,100

12. The recommendation should be to accept the bid of (Points : 1)
Westinghome
Itis

13. The annual income from a rental house is $ 14,000. The annual expenses are $ 4,000. The house is bought for $ 90,000. At the end of eight years the house is sold for $ 140,000. For an interest rate of 8 %, the Net Present Worth of this investment is most nearly
$ 42,400
$ 42,900
$ 43,100
$ 45,400

14. A machine is purchased for $ 10,000. Its life is six years and there is no salvage value. Annual maintenance is paid at the end of each year. The first year maintenance is $ 2,000 and maintenance increases by 15 % each year. The interest rate is 8 %. The Present Value of the cost is most nearly
$ 21,900
$ 22,400
$ 23,100
$ 23,800

15. The present worth of the cost for alternative B is most nearly
- $ 1,105
- $ 1,215
- $ 1,295
- $ 1,305

16. Which course of action should be selected?
Alternative A
Alternative B

17. The present worth of costs is most nearly:
$ 6,000
$ 6,025
$ 6,150
$ 6,200

18. The present worth of benefits is most nearly:
$ 6,000
$ 6,025
$ 6,100
$ 6,150

19. The appropriate recommendation should be:
Invest in the equipment
Don't invest in the equipment

20. The NPW of alternative B is most nearly
$3.50
$6.80
$7.70
$9.20

21. The NPW of alternative A is most nearly
$3.50
$6.80
$7.70
$9.20

22. The NPW of alternative C is most nearly
$3.50
$6.80
$7.70
$12.40

23. The NPW of alternative D is most nearly
$3.50
$7.70
$9.20
$32.40

24. The NPW of alternative E is most nearly:
$7.70
$9.20
$12.40
$32.40

25. The NPW of alternative F is most nearly:
$3.50
$7.70
$12.40
$32.40

26. Which alternative should be selected?
A
B
C
D
E
F

27. The amount of money deposited 50 years ago is most nearly:
$2,600
$5,300
$7,100
$20,400

28. The capitalized cost of the dam, including maintenance is most nearly
$ 2.2 million
$ 2.3 million
$ 2.4 million
$ 2.5 million

29. The maximum equal annual withdrawal is most nearly
$ 1150
$ 1180
$ 1270
$ 1390