Engineering Economy: Present Worth and Annual Worth Analysis MCQ Exam
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Questions and Answers

What is the main focus of engineering economy exams in chapters present worth and annual worth analysis?

  • Supply chain optimization
  • Time value of money concepts (correct)
  • Project management principles
  • Quality control techniques

    • What is the primary objective of present worth analysis in engineering economy?

  • Assessing project risk factors
  • Determining the equivalent value of cash flows at the present time (correct)
  • Analyzing supply chain costs
  • Forecasting future project cash flows

    • In annual worth analysis, what does the term 'annual worth' refer to?

  • The project's net present value
  • The total project cost
  • The equivalent uniform annual amount over the project life (correct)
  • The future value of cash inflows

    • Which financial concept is fundamental to both present worth and annual worth analysis in engineering economy?

    <p>Discounted cash flow</p> Signup and view all the answers

    What is the focus of engineering economy exams in the chapters on present worth and annual worth analysis?

    <p>Evaluating investment alternatives over time</p> Signup and view all the answers

    In annual worth analysis, what does the term 'annual worth' represent?

    <p>The equivalent uniform cash flow over the project's lifetime</p> Signup and view all the answers

    What is the primary objective of present worth analysis in engineering economy?

    <p>Assessing the net present value of projects</p> Signup and view all the answers

    Which financial concept is fundamental to both present worth and annual worth analysis in engineering economy?

    <p>Opportunity cost</p> Signup and view all the answers

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