FIM3701
ASSIGNMENT 1 SEMESTER 1 2025
UNIQUE NO.
DUE DATE: 2025
, FIM3701 Assignment 1:
1. Select only the statement that is true:
✅ B. One method of incorporating risk into a capital budget is to use a risk-adjusted
discount rate.
2. Select only the statement that is 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.
3. Select only the statement that is true:
✅ A. The effects of inflation are removed when the real interest rate is used.
✅ 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.
4. Select only the statement that is 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.
ASSIGNMENT 1 SEMESTER 1 2025
UNIQUE NO.
DUE DATE: 2025
, FIM3701 Assignment 1:
1. Select only the statement that is true:
✅ B. One method of incorporating risk into a capital budget is to use a risk-adjusted
discount rate.
2. Select only the statement that is 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.
3. Select only the statement that is true:
✅ A. The effects of inflation are removed when the real interest rate is used.
✅ 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.
4. Select only the statement that is 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.