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Civil Engineering :: Engineering Economy

  1. The key to profitable operation for project cost control, is :

  2. A.
    To keep the project cost equal to original cost estimate.
    B.
    To keep the project cost equal to subsequent construction budget.
    C.
    To keep the project cost within the cost budget and knowing when and where job costs are deviating.
    D.
    None of these

  3. The annuity which refers to a debt payment for recovering the initial amount or capital in equal periodical payments, is known as;

  4. A.
    Present Worth Annuity
    B.
    Sinking fund annuity
    C.
    Compound annuity
    D.
    Capital recovery annuity

  5. The product of CAF (S P) and PWF (S P) is:

  6. A.
    1/2
    B.
    1
    C.
    1/3
    D.
    1/4

  7. Pick up the correct reason for making conceptual (or preliminary) estimate from the following:

  8. A.
    To have a check on a definitive cost estimate.
    B.
    To check qoutations from contractors and/or sub contractors.
    C.
    To compute target estimate for the owner while drawings and specifications are in initial stage.
    D.
    All of these.

  9. Pick up the correct statement from the following:

  10. 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

  11. The project contractor relies on the cost of the estimate :

  12. A.
    for submission of a competitive bid for a lumpsum contract
    B.
    for a unit price contract
    C.
    for preparation of a definitive estimate to help negotiate contract.
    D.
    All of these

  13. The wages of supervisors and material handlers are charged as :

  14. A.
    Over head
    B.
    direct labour cost
    C.
    indirect labour cost
    D.
    None of these

  15. The CRF (ep) is also known as: [CRF(EP) - 8% - 7], where

  16. A.
    8% is the rate of interest per year
    B.
    money is borrowed for n = 7 years
    C.
    both (a) and (b)
    D.
    Neither (a) nor (b)

  17. Annuities involve:

  18. A.
    a series of payments
    B.
    all payments of equal amount
    C.
    payment at equal time intervals
    D.
    payments at the end of periods.
    E.
    All of these