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Final EXAM - Eecon 1 (SET A) - Answer KEy
2. A man formerly employed as chief mechanic of an automobile repair s...
Course
Electronic Circuit: devices and analysis (ECDA 223)
272 Documents
Students shared 272 documents in this course
University
STI West Negros University
Academic year: 2022/2023
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FINAL EXAMINATION IN EECON 1 – Engineering Economics (SET A)
Name:_________________________________
Year and Section:_______
I. Instructions: Select the correct answer for each of the
following questions. Mark only one answer for each item by
shading the circle that corresponds to the letter of your
choice on the answer sheet provided. STRICTLY NO
ERASURES ALLOWED. Please darken your shading. Use
pencil No. 2 only.
1. The unrecovered depreciation which results due to poor
estimates as to the life of the equipment is called
A. economic life C. in-place value
B. sunk cost D. depreciation
uncharged
2. What is normally used to compare alternatives that
accomplish the same purpose but have unequal lives?
A. Capitalized cost method C. Annual cost method
B. Present worth method D. Rate of Return
method
3. Which of the following statements is NOT a
characteristic of a typical alterative comparison problem
format?
A. Investment rate is given
B. All interest rates are expressed as whole numbers
C. Two or more alternatives will be competing for
funding
D. Each given alternative will have its own cash flow
4. What refers to the study or analysis period that is
selected over which mutually exclusive alternatives are
compared?
A. Planning period C. Planning stage
B. Planning horizon D. Planning
scheme
5. What is another term for annual cost method?
A. Capital recover method
B. Present worth recovery method
C. Cost opportunity method
D. Return of investment method
6. What method is often used in municipal project
evaluations where benefits and costs accrue to different
segments of the community?
A. Annual cost method C. Rate of
return method
B. Benefit-cost ratio D. EUAC
7. What of the following is NOT used for selecting a
superior alternative from among a group of proposals
by comparing one alternative with another alternative?
A. Benefit-cost ratio C. Present
worth
B. Annual cost D. Capitalized cost
8. What is another term for Savings Investment Ratio?
A. Income benefit ratio C. Profit to lost ratio
B. Cost benefit ratio D. Income
investment ratio
9. What refers to an imaginary cost representing what will
not be received if a particular strategy is rejected?
A. Horizon cost C. Opportunity cost
B. Null cost D. Ghost cost
10. What is the main reason why the sinking fund method
of computing depreciation is seldom used in the
industry?
A. Unstable economy.
B. Rate of interest cannot be exactly determined.
C. The initial depreciation is high.
D. The initial depreciation is low.
11. What is the factor name of the formula (1+i)-n?
A. Uniform gradient future worth
B. Capital recovery
C. Single payment present worth
D. Single payment compound amount
12. What is the factor name of the formula
i ( 1 +i)
n
( 1 +i)
n
− 1
?
A. Uniform series sinking fund
B. Capital recovery
C. Single payment present worth
D. Uniform gradient future worth
13. Which method of evaluating the economic profitability
of a single
proposed problem solution that converts cash flow
resulting from a proposed solution into their equivalent
worth at some point in time by using MARR?
A. Future Worth C. Internal Rate of
Return
B. Annual Worth D. Future worth and
annual worth
14. For an alternative to be viable, the minimum attractive
rate of return (MARR) must be:
A. greater than the rate of return
B. equal the rate of return
C. less than the rate of return
D. equal the rate of investment
15. When making decisions on proposed investment using
minimum attractive rate of return (MARR):
A. It is greater than the interest rate used to discount
from investment.
B. It is less than the interest used to discount from
investment.
C. It is normally a policy decision made by the
manager of the company.
D. All of the above.
Kindly shade the letter of your choice in the answer sheet
below.
II. Instructions: Answer the following problems. Write your
solutions legibly on a long-sized newsprint. BOX your final
answers.
1. A construction contractor has four options to
purchase a dump truck for transportation and
dumping of soil at a construction site. All the
alternatives have the same useful life of 10 years.
Use interest rate equal to 8%. The cash flow
Was this document helpful?
Final EXAM - Eecon 1 (SET A) - Answer KEy
Course: Electronic Circuit: devices and analysis (ECDA 223)
272 Documents
Students shared 272 documents in this course
University: STI West Negros University
Was this document helpful?
FINAL EXAMINATION IN EECON 1 – Engineering Economics (SET A)
Name:_________________________________
Year and Section:_______
I. Instructions: Select the correct answer for each of the
following questions. Mark only one answer for each item by
shading the circle that corresponds to the letter of your
choice on the answer sheet provided. STRICTLY NO
ERASURES ALLOWED. Please darken your shading. Use
pencil No. 2 only.
1. The unrecovered depreciation which results due to poor
estimates as to the life of the equipment is called
A. economic life C. in-place value
B. sunk cost D. depreciation
uncharged
2. What is normally used to compare alternatives that
accomplish the same purpose but have unequal lives?
A. Capitalized cost method C. Annual cost method
B. Present worth method D. Rate of Return
method
3. Which of the following statements is NOT a
characteristic of a typical alterative comparison problem
format?
A. Investment rate is given
B. All interest rates are expressed as whole numbers
C. Two or more alternatives will be competing for
funding
D. Each given alternative will have its own cash flow
4. What refers to the study or analysis period that is
selected over which mutually exclusive alternatives are
compared?
A. Planning period C. Planning stage
B. Planning horizon D. Planning
scheme
5. What is another term for annual cost method?
A. Capital recover method
B. Present worth recovery method
C. Cost opportunity method
D. Return of investment method
6. What method is often used in municipal project
evaluations where benefits and costs accrue to different
segments of the community?
A. Annual cost method C. Rate of
return method
B. Benefit-cost ratio D. EUAC
7. What of the following is NOT used for selecting a
superior alternative from among a group of proposals
by comparing one alternative with another alternative?
A. Benefit-cost ratio C. Present
worth
B. Annual cost D. Capitalized cost
8. What is another term for Savings Investment Ratio?
A. Income benefit ratio C. Profit to lost ratio
B. Cost benefit ratio D. Income
investment ratio
9. What refers to an imaginary cost representing what will
not be received if a particular strategy is rejected?
A. Horizon cost C. Opportunity cost
B. Null cost D. Ghost cost
10. What is the main reason why the sinking fund method
of computing depreciation is seldom used in the
industry?
A. Unstable economy.
B. Rate of interest cannot be exactly determined.
C. The initial depreciation is high.
D. The initial depreciation is low.
11. What is the factor name of the formula (1+i)-n?
A. Uniform gradient future worth
B. Capital recovery
C. Single payment present worth
D. Single payment compound amount
12. What is the factor name of the formula
i(1+i)n
(1+i)n−1
?
A. Uniform series sinking fund
B. Capital recovery
C. Single payment present worth
D. Uniform gradient future worth
13. Which method of evaluating the economic profitability
of a single
proposed problem solution that converts cash flow
resulting from a proposed solution into their equivalent
worth at some point in time by using MARR?
A. Future Worth C. Internal Rate of
Return
B. Annual Worth D. Future worth and
annual worth
14. For an alternative to be viable, the minimum attractive
rate of return (MARR) must be:
A. greater than the rate of return
B. equal the rate of return
C. less than the rate of return
D. equal the rate of investment
15. When making decisions on proposed investment using
minimum attractive rate of return (MARR):
A. It is greater than the interest rate used to discount
from investment.
B. It is less than the interest used to discount from
investment.
C. It is normally a policy decision made by the
manager of the company.
D. All of the above.
Kindly shade the letter of your choice in the answer sheet
below.
II. Instructions: Answer the following problems. Write your
solutions legibly on a long-sized newsprint. BOX your final
answers.
1. A construction contractor has four options to
purchase a dump truck for transportation and
dumping of soil at a construction site. All the
alternatives have the same useful life of 10 years.
Use interest rate equal to 8%. The cash flow
