TEST BANK
Engineering Economy
Leland T. Blank and Anthony Tarquin
? ?
S
9th Edition
S E
C C
U S
_ ?
A I
V U
ST
, TABLE OF CONTENTS
Engineering Economy (9th Edition)
Leland T. Blank and Anthony Tarquin
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
S
Chapter 5 Analysis Using Present Worth and Future Worth Values
S
Chapter 6 Annual Worth Analysis
Chapter 7 Rate of Return Analysis: One Project
E
Chapter 8 Rate of Return Analysis: Multiple Alternatives
C
Chapter 9 Benefit/Cost Analysis and Public Sector Economics
Chapter 10 Project Financing and Noneconomic Attributes
C
Chapter 11 Replacement and Retention Decisions
Chapter 12
U
Independent Projects with Budget Limitation
Chapter 13 Breakeven and Payback Analysis
Chapter 14 Effects of Inflation
S
Chapter 15 Cost Estimation and Indirect Cost Allocation
_
Chapter 16 Depreciation and Depletion Methods
Chapter 17 After-Tax Economic Analysis
?
Chapter 18 Sensitivity Analysis and Staged Decisions
Chapter 19 Decision Making under Risk
A I
V U
S T
,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
?
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.
S
⊚ true
S
⊚ false
E
3) The symbol for present worth is P and it always represents a cash outflow (cost).
⊚ true
C
⊚ false
C
4) A company's minimum attractive rate of return is generally equal to the rate of return
obtainable on a bank savings account.
U
⊚ true
⊚ false
S
5) Cash inflows are also known as disbursements.
_
⊚ true
?
⊚ false
A I
V U
S T
Version 1 1
, Answer Key
Test name: CH01
1) FALSE
?
The time period does not have to be annual.
?
2) TRUE
S
3) FALSE
The Symbol P can also represent a net income.
S E
4) FALSE
A company's MARR is usually higher than the safe rate.
C
5) FALSE
C
Dispursements are cash outflows.
U
_ S
A ?
V I
TU
S
Version 1 2
Engineering Economy
Leland T. Blank and Anthony Tarquin
? ?
S
9th Edition
S E
C C
U S
_ ?
A I
V U
ST
, TABLE OF CONTENTS
Engineering Economy (9th Edition)
Leland T. Blank and Anthony Tarquin
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
S
Chapter 5 Analysis Using Present Worth and Future Worth Values
S
Chapter 6 Annual Worth Analysis
Chapter 7 Rate of Return Analysis: One Project
E
Chapter 8 Rate of Return Analysis: Multiple Alternatives
C
Chapter 9 Benefit/Cost Analysis and Public Sector Economics
Chapter 10 Project Financing and Noneconomic Attributes
C
Chapter 11 Replacement and Retention Decisions
Chapter 12
U
Independent Projects with Budget Limitation
Chapter 13 Breakeven and Payback Analysis
Chapter 14 Effects of Inflation
S
Chapter 15 Cost Estimation and Indirect Cost Allocation
_
Chapter 16 Depreciation and Depletion Methods
Chapter 17 After-Tax Economic Analysis
?
Chapter 18 Sensitivity Analysis and Staged Decisions
Chapter 19 Decision Making under Risk
A I
V U
S T
,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
?
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.
S
⊚ true
S
⊚ false
E
3) The symbol for present worth is P and it always represents a cash outflow (cost).
⊚ true
C
⊚ false
C
4) A company's minimum attractive rate of return is generally equal to the rate of return
obtainable on a bank savings account.
U
⊚ true
⊚ false
S
5) Cash inflows are also known as disbursements.
_
⊚ true
?
⊚ false
A I
V U
S T
Version 1 1
, Answer Key
Test name: CH01
1) FALSE
?
The time period does not have to be annual.
?
2) TRUE
S
3) FALSE
The Symbol P can also represent a net income.
S E
4) FALSE
A company's MARR is usually higher than the safe rate.
C
5) FALSE
C
Dispursements are cash outflows.
U
_ S
A ?
V I
TU
S
Version 1 2
