FIM3701
ASSIGNMENT 1 SEMESTER 1 2025
UNIQUE NO.
DUE DATE: 2025
, FIM3701
Assignment 1 Semester 1 2025
Unique Number:
Due Date: 2025
Civil Engineering Financial Management
Question 1:
Select only the statement that is true:
A. Companies with well-diversified portfolios of projects should only be concerned with
the market risk as quantified by the Beta coefficient of the portfolio.
B. One method of incorporating risk into a capital budget is to use a risk-adjusted
discount rate.
C. None of the other statements/options is correct.
D. It is impossible to reduce diversifiable or unsystematic risk by adding more projects
to a portfolio.
Correct Answer: B
Question 2:
Select only the statements that are true:
A. Approval of projects can be delayed or even cancelled because of the financial
situation in a country.
B. Economic feasibility and efficiency are two economic objectives of the engineering
design process.
C. None of the other statements/options is correct.
D. Procurement cost is just one of a number of costs that form part of life cycle cost.
, Correct Answers: A, B, D
Question 3:
Select only the statement that is true:
A. The effects of inflation are removed when the real interest rate is used.
B. None of the other statements/options is correct.
C. R1000 today, in 2021, will in two years’ time, in 2023, have the power to purchase
goods worth R950 today, if a constant inflation rate of 5% applies.
D. Inflation increases the purchasing power of money.
Correct Answer: A
Question 4:
Select only the statements that are true:
A. When dealing with very complex issues, models are often used to simplify the
situation by focusing on a few essential variables.
B. Earnings per share can be calculated by dividing the total earnings available to the
company’s stockholders by the number of common stock outstanding.
C. None of the other statements/options is correct.
D. The higher the risk associated with a project or a corporation, the lower the required
expected return by investors would be.
Correct Answers: A, B
Question 5:
ASSIGNMENT 1 SEMESTER 1 2025
UNIQUE NO.
DUE DATE: 2025
, FIM3701
Assignment 1 Semester 1 2025
Unique Number:
Due Date: 2025
Civil Engineering Financial Management
Question 1:
Select only the statement that is true:
A. Companies with well-diversified portfolios of projects should only be concerned with
the market risk as quantified by the Beta coefficient of the portfolio.
B. One method of incorporating risk into a capital budget is to use a risk-adjusted
discount rate.
C. None of the other statements/options is correct.
D. It is impossible to reduce diversifiable or unsystematic risk by adding more projects
to a portfolio.
Correct Answer: B
Question 2:
Select only the statements that are true:
A. Approval of projects can be delayed or even cancelled because of the financial
situation in a country.
B. Economic feasibility and efficiency are two economic objectives of the engineering
design process.
C. None of the other statements/options is correct.
D. Procurement cost is just one of a number of costs that form part of life cycle cost.
, Correct Answers: A, B, D
Question 3:
Select only the statement that is true:
A. The effects of inflation are removed when the real interest rate is used.
B. None of the other statements/options is correct.
C. R1000 today, in 2021, will in two years’ time, in 2023, have the power to purchase
goods worth R950 today, if a constant inflation rate of 5% applies.
D. Inflation increases the purchasing power of money.
Correct Answer: A
Question 4:
Select only the statements that are true:
A. When dealing with very complex issues, models are often used to simplify the
situation by focusing on a few essential variables.
B. Earnings per share can be calculated by dividing the total earnings available to the
company’s stockholders by the number of common stock outstanding.
C. None of the other statements/options is correct.
D. The higher the risk associated with a project or a corporation, the lower the required
expected return by investors would be.
Correct Answers: A, B
Question 5:
