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9th Edition
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TEST BANK
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Leland Blank
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Comprehensive Test Bank for Instructors
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and Students
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© Leland Blank. All rights reserved. Reproduction or distribution without permission is
prohibited.
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©DREAMSHUB
, Engineering Economy (9th Edition)
Authors: Leland T. Blank, Anthony Tarquin
Test Bank
ISBN: 9781264158096
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TABLE OF CONTENTS
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Chapter 1: Foundations of Engineering Economy
Chapter 2: Factors: How Time and Interest Affect Money
Chapter 3: Combining Factors and Spreadsheet Functions
Chapter 4: Nominal and Effective Interest Rates
Chapter 5: Analysis Using Present Worth and Future Worth Values
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Chapter 6: Annual Worth Analysis
Chapter 7: Rate of Return Analysis: One Project
Chapter 8: Rate of Return Analysis: Multiple Alternatives
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Chapter 9: Benefit/Cost Analysis and Public Sector Economics
Chapter 10: Project Financing and Noneconomic Attributes
Chapter 11: Replacement and Retention Decisions
Chapter 12: Independent Projects with Budget Limitation
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Chapter 13: Breakeven and Payback Analysis
Chapter 14: Effects of Inflation
Chapter 15: Cost Estimation and Indirect Cost Allocation
Chapter 16: Depreciation and Depletion Methods
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Chapter 17: After- Tax Economic Analysis
Chapter 18: Sensitivity Analysis and Staged Decisions
Chapter 19: Decision Making under Risk
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©DREAMSHUB
, Student name:__________
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Interest rates are always expressed as a percentage over an annual time period.
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⊚ true
⊚ false
2) When interest is compounded annually, the amount of money accumulated in one year is the
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same under either a simple or compound interest scenario.
⊚ true
⊚ false
3) The symbol for present worth is P and it always represents a cash outflow (cost).
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⊚ true
⊚ false
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4) A company's minimum attractive rate of return is generally equal to the rate of return
obtainable on a bank savings account.
⊚ true
⊚ false
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5) Cash inflows are also known as disbursements.
⊚ true
⊚ false
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Version 1 1
, Answer Key
Test name: CH01
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1) FALSE
The time period does not have to be annual.
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2) TRUE
3) FALSE
The Symbol P can also represent a net income.
4) FALSE
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A company's MARR is usually higher than the safe rate.
5) FALSE
Dispursements are cash outflows.
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Version 1 2