Order the answer to: Multiple Choice Questions 1. The…
| Question | Multiple Choice Questions 1. The concept that different sums of money at different points in time can be said to be equal to each other is known as: (a) Evaluation criterion (b) Equivalence (c) Cash flow (d) Intangible factors 2. The evaluation criterion that is usually used in an economic analysis is: (a) Time to completion (b) Technical feasibility (c) Sustainability (d) Financial units (dollars or other currency) 3. All of the following are examples of cash outflows, except: (a) Asset (b) Income taxes (c) Operating cost of asset (d) First cost of asset 4. In most engineering economy studies, the best alternative is the one that: (a) Will last the longest time (b) Is most politically correct (c) Is easiest to implement (d) Has the lowest cost 5. At an interest rate of 10% per year, the equivalent amount of $10,000 one year ago is closest to: (a) $8264 (b) $9091 (c) $11,000 (d) $12,000 6. Assume that you and your best friend each have$1000 to invest. You invest your money in a fund that pays 10% per year compound interest. Your friend invests her money at a bank that pays 10% per year simple interest. At the end of 1 year, the difference in the total amount for each of you is: (a) You have $10 more than she does (b) You have $100 more than she does (c) You both have the same amount of money (d) She has $10 more than you do 7. All of the following are examples of equity financing, except: (a) Mortgage (b) Money from savings (c) Cash on hand (d) Retained earnings |
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| Subject | business-economics |
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