Solutions Manual for Engineering Economy, 9th Edition by Leland Blank, Anthony
Tarquin All 1-19 Chapters Covered With Questions And Verified Solutions With
Detailed Rationales And Case Study.
, TABLE OF CONTENT
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
Chapter 5: Analysis Using Present Worth and Future Worth Values
Chapter 6: Annual Worth Analysis
Chapter 7: Rate of Return Analysis: One Project
Chapter 8: Rate of Return Analysis: Multiple Alternatives
Chapter 9: Benefit/Cost Analysis and Public Sector Economics
Chapter 10: Project Financing and Noneconomic Attributes
Chapter 11: Replacement and Retention Decisions
Chapter 12: Independent Projects with Budget Limitation
Chapter 13: Breakeven and Payback Analysis
Chapter 14: Effects of Inflation
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
, Chapter 1: Foundations of Engineering Economy
Multiple Choice Questions
Q1.
Engineering economy primarily deals with:
A. Designing engineering systems
B. Evaluating economic feasibility of alternatives
C. Managing human resources
D. Writing technical reports
Correct Answer: B
Rationale:
Engineering economy focuses on comparing alternatives based on costs and benefits to determine
the most economically viable option—not on design or HR functions.
Q2.
The main objective of engineering economy is to:
A. Maximize production
B. Minimize risk only
C. Make sound financial decisions
D. Eliminate uncertainty
Correct Answer: C
Rationale:
Engineering economy helps decision-makers choose the best financial alternative considering costs,
benefits, and constraints.
Q3.
Scarcity refers to:
A. Unlimited resources
B. Limited resources with unlimited wants
C. Excess supply
D. Free goods
Correct Answer: B
Rationale:
Scarcity is a fundamental economic concept—resources are limited, but human wants are unlimited,
requiring choices.
, Q4.
Opportunity cost is:
A. Direct cost
B. Indirect cost
C. Cost of the next best alternative forgone
D. Fixed cost
Correct Answer: C
Rationale:
Opportunity cost represents the benefit lost when one alternative is chosen over another.
Q5.
A fixed cost is:
A. Variable with production
B. Independent of production level
C. Always increasing
D. Always decreasing
Correct Answer: B
Rationale:
Fixed costs (e.g., rent) remain constant regardless of output.
Q6.
Variable costs:
A. Stay constant
B. Change with production level
C. Are unrelated to output
D. Are always higher than fixed costs
Correct Answer: B
Rationale:
Variable costs (e.g., materials) increase or decrease depending on production volume.
Q7.
Revenue is defined as:
A. Total expenses
B. Profit
C. Income from sales
D. Loss
Tarquin All 1-19 Chapters Covered With Questions And Verified Solutions With
Detailed Rationales And Case Study.
, TABLE OF CONTENT
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
Chapter 5: Analysis Using Present Worth and Future Worth Values
Chapter 6: Annual Worth Analysis
Chapter 7: Rate of Return Analysis: One Project
Chapter 8: Rate of Return Analysis: Multiple Alternatives
Chapter 9: Benefit/Cost Analysis and Public Sector Economics
Chapter 10: Project Financing and Noneconomic Attributes
Chapter 11: Replacement and Retention Decisions
Chapter 12: Independent Projects with Budget Limitation
Chapter 13: Breakeven and Payback Analysis
Chapter 14: Effects of Inflation
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
, Chapter 1: Foundations of Engineering Economy
Multiple Choice Questions
Q1.
Engineering economy primarily deals with:
A. Designing engineering systems
B. Evaluating economic feasibility of alternatives
C. Managing human resources
D. Writing technical reports
Correct Answer: B
Rationale:
Engineering economy focuses on comparing alternatives based on costs and benefits to determine
the most economically viable option—not on design or HR functions.
Q2.
The main objective of engineering economy is to:
A. Maximize production
B. Minimize risk only
C. Make sound financial decisions
D. Eliminate uncertainty
Correct Answer: C
Rationale:
Engineering economy helps decision-makers choose the best financial alternative considering costs,
benefits, and constraints.
Q3.
Scarcity refers to:
A. Unlimited resources
B. Limited resources with unlimited wants
C. Excess supply
D. Free goods
Correct Answer: B
Rationale:
Scarcity is a fundamental economic concept—resources are limited, but human wants are unlimited,
requiring choices.
, Q4.
Opportunity cost is:
A. Direct cost
B. Indirect cost
C. Cost of the next best alternative forgone
D. Fixed cost
Correct Answer: C
Rationale:
Opportunity cost represents the benefit lost when one alternative is chosen over another.
Q5.
A fixed cost is:
A. Variable with production
B. Independent of production level
C. Always increasing
D. Always decreasing
Correct Answer: B
Rationale:
Fixed costs (e.g., rent) remain constant regardless of output.
Q6.
Variable costs:
A. Stay constant
B. Change with production level
C. Are unrelated to output
D. Are always higher than fixed costs
Correct Answer: B
Rationale:
Variable costs (e.g., materials) increase or decrease depending on production volume.
Q7.
Revenue is defined as:
A. Total expenses
B. Profit
C. Income from sales
D. Loss
