TEST BANK
Engineering Economy, | 9th Edition
by Leland T. Blank, Anthony Tarquin
TU
TO
R
G
U
R
U
, Table of Content
Learning Stage 1 - The Fundamentals
1) Foundations of Engineering Economy
2) Factors: How Time and Interest Affect Money
3) Combining Factors and Spreadsheet Functions
4) Nominal and Effective Interest Rates
Learning Stage 2 - Basic Analysis Tools
TU
5) Analysis Using Present Worth and Future Worth Values
6) Annual Worth Analysis
7) Rate of Return Analysis: One Project
TO
8) Rate of Return Analysis: Multiple Alternatives
9) Benefit/Cost Analysis and Public Sector Economics
Learning Stage 2 - Epilogue: Selecting the Basic Analysis Tool
Learning Stage 3 - Making Decisions
R
10) Project Financing and Noneconomic Attributes
G
11) Replacement and Retention Decisions
12) Independent Projects with Budget Limitation
U
13) Breakeven and Payback Analysis
Learning Stage 4 - Rounding Out the Study
R
14) Effects of Inflation
15) Cost Estimation and Indirect Cost Allocation
U
16) Depreciation and Depletion Methods
17) After-Tax Economic Analysis
18) Sensitivity Analysis and Staged Decisions
19) Decision Making under Risk
,Student name:__________
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
Interest rates are always expressed as a percentage over an annual time period.
true
false
When interest is compounded annually, the amount of money accumulated in one year is the
TU
same under either a simple or compound interest scenario.
true
false
TO
The symbol for present worth is P and it always represents a cash outflow (cost).
true
false
R
A company's minimum attractive rate of return is generally equal to the rate of return obtainable
on a bank savings account.
G
true
false
U
Cash inflows are also known as disbursements.
R
true
false
U
Version 1 1
, Answer Key
Test name: CH01
FALSE
The time period does not have to be annual.
TRUE
TU
FALSE
The Symbol P can also represent a net income.
FALSE
TO
A company's MARR is usually higher than the safe rate.
FALSE
Dispursements are cash outflows.
R
G
U
R
U
Version 1 2
Engineering Economy, | 9th Edition
by Leland T. Blank, Anthony Tarquin
TU
TO
R
G
U
R
U
, Table of Content
Learning Stage 1 - The Fundamentals
1) Foundations of Engineering Economy
2) Factors: How Time and Interest Affect Money
3) Combining Factors and Spreadsheet Functions
4) Nominal and Effective Interest Rates
Learning Stage 2 - Basic Analysis Tools
TU
5) Analysis Using Present Worth and Future Worth Values
6) Annual Worth Analysis
7) Rate of Return Analysis: One Project
TO
8) Rate of Return Analysis: Multiple Alternatives
9) Benefit/Cost Analysis and Public Sector Economics
Learning Stage 2 - Epilogue: Selecting the Basic Analysis Tool
Learning Stage 3 - Making Decisions
R
10) Project Financing and Noneconomic Attributes
G
11) Replacement and Retention Decisions
12) Independent Projects with Budget Limitation
U
13) Breakeven and Payback Analysis
Learning Stage 4 - Rounding Out the Study
R
14) Effects of Inflation
15) Cost Estimation and Indirect Cost Allocation
U
16) Depreciation and Depletion Methods
17) After-Tax Economic Analysis
18) Sensitivity Analysis and Staged Decisions
19) Decision Making under Risk
,Student name:__________
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
Interest rates are always expressed as a percentage over an annual time period.
true
false
When interest is compounded annually, the amount of money accumulated in one year is the
TU
same under either a simple or compound interest scenario.
true
false
TO
The symbol for present worth is P and it always represents a cash outflow (cost).
true
false
R
A company's minimum attractive rate of return is generally equal to the rate of return obtainable
on a bank savings account.
G
true
false
U
Cash inflows are also known as disbursements.
R
true
false
U
Version 1 1
, Answer Key
Test name: CH01
FALSE
The time period does not have to be annual.
TRUE
TU
FALSE
The Symbol P can also represent a net income.
FALSE
TO
A company's MARR is usually higher than the safe rate.
FALSE
Dispursements are cash outflows.
R
G
U
R
U
Version 1 2
