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.
©MedConnoisseur
, TABLE OF CONTENTS
Test Bank – Engineering Economy, 9th Edition (ISBN 9781264158096)
Leland Blank & Anthony Tarquin
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Learning Stage 1 – The Fundamentals
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
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Learning Stage 2 – Basic Analysis Tools
Chapter 5. Analysis Using Present Worth and Future Worth Values
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
Learning Stage 2 – Epilogue: Selecting the Basic Analysis Tool
Learning Stage 3 – Making Decisions
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Chapter 10. Project Financing and Noneconomic Attributes
Chapter 11. Replacement and Retention Decisions
Chapter 12. Independent Projects with Budget Limitation
Chapter 13. Breakeven and Payback Analysis
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Learning Stage 4 – Rounding Out the Study
Chapter 14. Effects of Inflation
Chapter 15. Cost Estimation and Indirect Cost Allocation
Chapter 16. Depreciation and Depletion Methods
Chapter 17. After-Tax Economic Analysis
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Chapter 18. Sensitivity Analysis and Staged Decisions
Chapter 19. Decision Making under Risk
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©MedConnoisseur
, Chapter 1: Foundations of Engineering Economy
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.
⊚ true
⊚ false
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2) When interest is compounded annually, the amount of money accumulated in one year is the
same under either a simple or compound interest scenario.
⊚ true
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⊚ false
3) The symbol for present worth is P and it always represents a cash outflow (cost).
⊚ 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.
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⊚ true
⊚ false
5) Cash inflows are also known as disbursements.
⊚ true
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⊚ false
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Version 1 1
, Answer Key
Test name: CH01
1) FALSE
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The time period does not have to be annual.
2) TRUE
3) FALSE
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The Symbol P can also represent a net income.
4) FALSE
A company's MARR is usually higher than the safe rate.
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5) FALSE
Dispursements are cash outflows.
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