Question

Question 2 Part A (2 points): Select "True" or "False" and correct false statements and mark your answers in the talte ast page: 1. When developing feasible alternatives, the "nominal group technique" aims at incorporating individual ideas into a group consensus. It also removes the undesirable effect of classical brainstorming. True False 2. For solutions to engineering problems to be economically acceptable, the long-term benefits of these solutions must be equal or more than their long-term costs, among other things. True False Part B (3 points): Select "True" or "False" and correct false statements and mark your answers in the table at last page: For a perfect monopoly to exist, there must be no substitute goods available 3. False True Opportunity Costs that are nonrefundable and is not a part of the future cash flows and are generally disregarded in 4 engineering economic analysis. False True Depreciation is a type of cash flow. 5. False True

Answer 1

1. True

"Nominal Group Technique" is a process of solving the problem by inculcating the views of all the individuals in the group. The various steps involved in the process are- Preparation, silent idea generation, recording of ideas, serial discussion of the idea, preliminary voting, final voting.

2. True

For any project to be economically acceptable, the long term benefits of the project must be higher than or at least equal to the long term cost of the project.

3. True

A perfect Monopoly will exist if the consumers do not have any other substitutes available in the market.

4. False

Opportunity cost is the cost of denied opportunity and forms an important part of engineering economic analysis.

5. False

Depreciation is a noncash flow expense. It is an ongoing expense of machine in use and does not involve any cash exchange.