TEST BANK
Engineering Economy, 9th Edition
By Leland Blank, Anthony Tarquin
TE
ST
SO
LU
TI
O
N
,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
TE
Learning Stage 2 - Basic Analysis Tools
5) Analysis Using Present Worth and Future Worth Values
6) Annual Worth Analysis
ST
7) Rate of Return Analysis: One Project
8) Rate of Return Analysis: Multiple Alternatives
9) Benefit/Cost Analysis and Public Sector Economics
SO
Learning Stage 2 - Epilogue: Selecting the Basic Analysis Tool
Learning Stage 3 - Making Decisions
10) Project Financing and Noneconomic Attributes
LU
11) Replacement and Retention Decisions
12) Independent Projects with Budget Limitation
13) Breakeven and Payback Analysis
TI
Learning Stage 4 - Rounding Out the Study
14) Effects of Inflation
O
15) Cost Estimation and Indirect Cost Allocation
16) Depreciation and Depletion Methods
N
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
TE
When interest is compounded annually, the amount of money accumulated in one year is the
same under either a simple or compound interest scenario.
true
ST
false
The symbol for present worth is P and it always represents a cash outflow (cost).
true
SO
false
A company's minimum attractive rate of return is generally equal to the rate of return obtainable
on a bank savings account.
LU
true
false
TI
Cash inflows are also known as disbursements.
true
O
false
N
Version 1 1
, Answer Key
Test name: CH01
FALSE
The time period does not have to be annual.
TE
TRUE
FALSE
The Symbol P can also represent a net income.
ST
FALSE
A company's MARR is usually higher than the safe rate.
FALSE
SO
Dispursements are cash outflows.
LU
TI
O
N
Version 1 2
Engineering Economy, 9th Edition
By Leland Blank, Anthony Tarquin
TE
ST
SO
LU
TI
O
N
,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
TE
Learning Stage 2 - Basic Analysis Tools
5) Analysis Using Present Worth and Future Worth Values
6) Annual Worth Analysis
ST
7) Rate of Return Analysis: One Project
8) Rate of Return Analysis: Multiple Alternatives
9) Benefit/Cost Analysis and Public Sector Economics
SO
Learning Stage 2 - Epilogue: Selecting the Basic Analysis Tool
Learning Stage 3 - Making Decisions
10) Project Financing and Noneconomic Attributes
LU
11) Replacement and Retention Decisions
12) Independent Projects with Budget Limitation
13) Breakeven and Payback Analysis
TI
Learning Stage 4 - Rounding Out the Study
14) Effects of Inflation
O
15) Cost Estimation and Indirect Cost Allocation
16) Depreciation and Depletion Methods
N
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
TE
When interest is compounded annually, the amount of money accumulated in one year is the
same under either a simple or compound interest scenario.
true
ST
false
The symbol for present worth is P and it always represents a cash outflow (cost).
true
SO
false
A company's minimum attractive rate of return is generally equal to the rate of return obtainable
on a bank savings account.
LU
true
false
TI
Cash inflows are also known as disbursements.
true
O
false
N
Version 1 1
, Answer Key
Test name: CH01
FALSE
The time period does not have to be annual.
TE
TRUE
FALSE
The Symbol P can also represent a net income.
ST
FALSE
A company's MARR is usually higher than the safe rate.
FALSE
SO
Dispursements are cash outflows.
LU
TI
O
N
Version 1 2
