The following is not an economic criterion to evaluate an engineering project:-
-minimum pollution
option(E)
The following are economic criteria to evaluate an engineering project, except one. Which one? Select one:...
Use investment criteria and capital budgeting techniques to evaluate the following project. The project involves equipment that costs $300,000 and will last five (5) years before it must be replaced. The 5 year project is expected to produce after-tax cash flows of $60,000 in the first year, and increase by $20,000 annually; the after-tax cash flow in year 5 will reach $140,000. The equipment will have no salvage value after five-years. The discount rate is 15%. Do not forget to...
Which of the following was NOT a capital budgeting metric used to evaluate the Merseyside project? (Identify all correct answers) Select one or more: a. NPV b. EPS c. IRR d. Payback period e. Duration
Which of the following criteria should be used to choose a project if there is a conflict between two mutually exclusive projects? A. The project whose payback period is equal to the expected years required to recover the original investment should be chosen. B. The project whose internal rate of return is higher than its modified internal rate of return should be chosen. C. The project whose discounted payback period is longer than its traditional payback period should be chosen....
Which of the following statements is INCORRECT? Select one: a. For independent projects, the decision to accept or reject will always be the same using either the MIRR method or the NPV method. b. The IRR method is appealing to some managers because it produces a rate of return upon which to base decisions rather than a dollar amount like the NPV method. c. One of the disadvantages of choosing between mutually exclusive projects on the basis of discounted payback...
XYZ is considering a project with an annual cash flow of GH¢ 80,000. The project would have a 10-year life, and the company uses a discount rate of 8 percent. (DF@ N=10, 8% = 6.710). What is the maximum amount the company could invest in the project and have the project still be acceptable (rounded)?\ Select one: a. GH¢ 406,420. b. GH¢ 800,000. c. GH¢ 536,800. d. GH¢ 727,208. The ABC Company has fixed costs of GH¢150,000 and variable costs...
1. The most popular capital budgeting techniques used in practice to evaluate and select projects are payback period, Net Present Value (NPV), and Internal Rate of Return (IRR). 2. Payback period is the number of years required for a company to recover the initial investment cost. 3. Net Present Value (NPV) technique: NPV is found by subtracting a project’s initial cost of investment from the present value of its cash flows discounted using the firm’s weighted average cost of capital....
Evaluating an engineering project involves the following constraints: Select one: a. financial, environmental, social and political constraints. b. technological and social constraints. c. budget and time constraints. d. time and money constraints. e. technical and financial constraints.In the textbook, abstraction means: Select one: a. a methodology. b. a method. c. an approach. d. a model. e. a study.
The alternatives which are standalone solutions for given : situations in engineering involve اختر أحد الخيارات a. a purchase cost initial cost) O b. None o c. The anticipated life of the assets O d. The annual costs of maintaining the assets (yearly O maintenance and operating cost) e. All of these O . Pick up the correct statement from the following اختر أحد الخيارات a. None of them O b. All of them O c. ngineering economy is a...
Which of the following statement(s) is(are) not considered in developing procedures for engineering economic analysis? Answer it based on the information in your lecture notes and textbook only. a. Problem recognition, definition, and evaluation. b. Process re-engineering. c. Development of the feasible alternatives. d. Selection of a decision criteria.
20. A project has a required payback period of three years. Which one of the following statements is correct concerning the payback analysis of this project? A) The cash flows in each of the three years must exceed one-third of the project's initial cost if the project is to be accepted. B) The cash flow in Year 3 is ignored. C) The project's cash flow in Year 3 is discounted by a factor of (1 + R)3 D) The cash...