CM 2113 Chao Wang Exam 1 2026/2027 A+ Grade Questions and Answers Study Material

CM 2113 Chao Wang Exam 1 questions and
answers 2026\2027 A+ Grade

T/F: The difference between accounting and engineering economics is that accounting evaluates and
predicts future events, and engineering economy evaluates past performance.
- correct answer False



T/F: Payments that differ in amount may be equal if made at different points in time.
- correct answer True



T/F: (P/F, i, N) stands for finding a future value given at a present value at interest rate i for N years.
- correct answer False



T/F: Uniform series of payments is a series of payments or receipts that occurs at the beginning of each
period for N periods.
- correct answer False



T/F: Compared to the straight line (SL) depreciation method, Sum of Year (SOY) depreciation method
results in larger depreciation charges during an asset's early years and smaller charges as the asset nears
the end of its depreciable life.
- correct answer False



T/F: In the modified accelerated cost recovery system (MACRS), salvage values are assumed to be 10%
of the total purchase price.
- correct answer False



T/F: When calculating equipment hourly operating cost, tires cost should be estimated separately as
part of operation cost
- correct answer True