ENGINEERING ECONOMY EXAM 2 COMPLETE
PREPARATION GUIDE WITH INTEREST FACTORS
AND PROJECT EVALUATION METHODS REVIEW
◉ Value.
Answer: Measure of worth a person ascribes to a good or services.
A utility to a person in terms of money.
◉ Cost.
Answer: Expenditure incurred in producing a product or service.
◉ Price.
Answer: Quantity of Resources (amount) a seller is ready to
exchange for goods or services.
◉ Market or Market Place.
Answer: A place where exchanges of goods and services take place
◉ Physical Market.
Answer: Fixed locations
, e.g. shop or group of shops
◉ Virtual Market.
Answer: online market
◉ Fair Market Value.
Answer: A price at which buyers and sellers with a reasonable
knowledge of pertinent facts and not acting under any compulsion
are willing to do business
◉ Distress Value.
Answer: Price Set by the buyer and seller on compulsion
◉ Capital.
Answer: Financial Resources deployed in an enterprise to produce
goods and services.
(e.g. Land, Building, equipment, money etc.)
◉ Equity.
Answer: Capital deployed in the form of ownership of an enterprise
PREPARATION GUIDE WITH INTEREST FACTORS
AND PROJECT EVALUATION METHODS REVIEW
◉ Value.
Answer: Measure of worth a person ascribes to a good or services.
A utility to a person in terms of money.
◉ Cost.
Answer: Expenditure incurred in producing a product or service.
◉ Price.
Answer: Quantity of Resources (amount) a seller is ready to
exchange for goods or services.
◉ Market or Market Place.
Answer: A place where exchanges of goods and services take place
◉ Physical Market.
Answer: Fixed locations
, e.g. shop or group of shops
◉ Virtual Market.
Answer: online market
◉ Fair Market Value.
Answer: A price at which buyers and sellers with a reasonable
knowledge of pertinent facts and not acting under any compulsion
are willing to do business
◉ Distress Value.
Answer: Price Set by the buyer and seller on compulsion
◉ Capital.
Answer: Financial Resources deployed in an enterprise to produce
goods and services.
(e.g. Land, Building, equipment, money etc.)
◉ Equity.
Answer: Capital deployed in the form of ownership of an enterprise
