### Information Systems And Engineering Economics Set 22

**On This Page**

This set of Information systems and engineering economics Multiple Choice Questions & Answers (MCQs) focuses on Information Systems And Engineering Economics Set 22

Q1 | Economic decisions differ in a fundamental way from the types of decisions typically encountered in engineering design.

- TRUE
- FALSE

Q2 | ENGINEERING ECONOMICS INVOLVES

- formulating
- estimating
- evaluating economic outcomes
- all

Q3 | The factors of time and uncertainty are the de?ning aspects of any engineering economic decisions

- TRUE
- FALSE

Q4 | engineering economic decision refers to all investment decisions relating to engineering projects.

- TRUE
- FALSE

Q5 | engineering economic decision is the evaluation of costs and benef associated with making a capital investment.

- TRUE
- FALSE

Q6 | The factors of and uncertainty are the de?ning aspects of any engineering economic decisions

- time
- investment

Q7 | Additional risk is not taken without an expected additional return of suitable magnitude

- TRUE
- FALSE

Q8 | Money has a time value because it can earn more money over time (earning power).

- TRUE
- FALSE

Q9 | F dollars at the end of period N is equal to a single sum P dollars now, if your earning power is measured in terms of interest rate i.

- TRUE
- FALSE

Q10 | Initial amount of money in transactions involving debt or investments is called the principal (P).

- TRUE
- FALSE

Q11 | engineering economic decision is the evaluation of costs and benef associated with making a capital .

- expenditure
- investment.

Q12 | Initial amount of money in transactions involving debt or investments is called

- interest
- principal

Q13 | Marginal revenue must exceed marginal cost, in order to carry out a pro?table increase of operations

- TRUE
- FALSE

Q14 | A plan for receipts or disbursements (An) that yields a particular cash ?ow pattern over a speci?ed length of time is called monthly equal payment

- TRUE
- FALSE

Q15 | At 8% interest, what is the equivalent worth of $2,042 after 5 years from now?

- -5000
- -4000
- -2000
- -3000

Q16 | If you had $2,000 now and invested it at 10%, how much would it be worth in 8 years?

- 4200
- 4287
- 5000

Q17 | Money has a time value because its purchasing power changes over time (in?ation).

- TRUE
- FALSE

Q18 | Interest is the cost of moneyas a cost to the borrower and an earning to the lender

- TRUE
- FALSE

Q19 | Cash Flow is the movement of money (in or out) of a project

- TRUE
- FALSE

Q20 | Given P = $1,000 , i = 8% and N = 3 years calculate future value using Compound interest

- 1200
- 1259.71

Q21 | Economic equivalence refers to the fact that a cash ?ow-whether a single payment or a series of payments-can be converted to an equivalent cash ?ow at any point in time.

- TRUE
- FALSE

Q22 | If you deposit P dollars today for N periods at i, you will have F dollars at the end of period N.

- TRUE
- FALSE

Q23 | A fund accumulated by periodic deposits and reserved exclusively for a speci?c purpose, such as retirement of a debt

- sinking fund
- principal
- interest

Q24 | A fund created by making periodic deposits (usually equal) at compound interest in order to accumulate a given sum at a given future time for some speci?c purpose is sinking fund

- TRUE
- FALSE

Q25 | Suppose that you invest $1 for 1 year at 18% compounded monthly. How much interest would you earn?

- 19.56 % compounded annu
- 18.56 % compounded a
- 20.56 % compounded annually