WMGT 101 Exam 2 Quiz Questions with
complete solutions A+
Econ:
Who in the Civil Engineer Squadron is responsible for evaluating investment decisions based on life-cycle
costs? (That is, who is involved in engineering economics?) - correct answer ✔✔Everyone with a role in
supporting or making investment decisions.
Econ:
The concept of "Time Value of Money" means what?
(absent any spikes in the economy) - correct answer ✔✔A thousand dollars will buy less in the future
than it does today.
Econ:
You are considering alternatives to building a new office building. One of the alternatives is to build an
addition to the existing office building on the north side. Another alternative is to build an addition to
the existing office building on the west side.
These two alternatives fail the standards for alternatives based on which criterion? - correct answer
✔✔Distinguishable
Econ:
You are considering a Direct Digital Control system for a building to replace the current pneumatic
system. The life span of the control system is 15 years. You also estimate you can continue to keep the
existing pneumatic system functional for 15 years. There are costs occurring throughout the life of the
systems to include year 5, year 10, and year 14.
, For the purpose of the Engineering Economics life-cycle cost analysis, what is the appropriate term of
analysis? - correct answer ✔✔15 years
Econ:
Which of the following situations would require an economic analysis?
[NOTE: Replacement Values given are the calculated cost to replace a facility, not the Plant Replacement
Values. Use the values as given and do not adjust them!]
A. Replace roof on a pole barn (repair project) at $500,000 (facility replacement value: $600,000)
B. Construct a new compressed gas storage facility (Construction) at $1,850,000 (no replacement value)
C. Renovate with headquarters (repair) at $7,800,000 (facility replacement value of $15,000,000)
D. Install a temporary relocatable sprung shelter to house the gym functions while the gym is renovated
($750,000 equipment costs, $250,000 construction costs - no facility replacement value)
E. All of the Above
F. None of the Above - correct answer ✔✔D. Install a temporary relocatable sprung shelter to house the
gym functions while the gym is renovated ($750,000 equipment costs, $250,000 construction costs - no
facility replacement value)
Econ:
You are preparing a project to replace the existing poorly sized and outdated dormitory on the
installation with a dorm meeting the new Chief-of-Staff directed dorm standard, programmed for late
the following fiscal year. The overall life cycle costs of the new dorm are $50,000,000 over the next 25
years, in comparison to 'Status Quo' (using the existing dorm throughout this period) at $10,000,000 life-
cycle costs. The existing dorm indeed has life-health-safety code violations.
complete solutions A+
Econ:
Who in the Civil Engineer Squadron is responsible for evaluating investment decisions based on life-cycle
costs? (That is, who is involved in engineering economics?) - correct answer ✔✔Everyone with a role in
supporting or making investment decisions.
Econ:
The concept of "Time Value of Money" means what?
(absent any spikes in the economy) - correct answer ✔✔A thousand dollars will buy less in the future
than it does today.
Econ:
You are considering alternatives to building a new office building. One of the alternatives is to build an
addition to the existing office building on the north side. Another alternative is to build an addition to
the existing office building on the west side.
These two alternatives fail the standards for alternatives based on which criterion? - correct answer
✔✔Distinguishable
Econ:
You are considering a Direct Digital Control system for a building to replace the current pneumatic
system. The life span of the control system is 15 years. You also estimate you can continue to keep the
existing pneumatic system functional for 15 years. There are costs occurring throughout the life of the
systems to include year 5, year 10, and year 14.
, For the purpose of the Engineering Economics life-cycle cost analysis, what is the appropriate term of
analysis? - correct answer ✔✔15 years
Econ:
Which of the following situations would require an economic analysis?
[NOTE: Replacement Values given are the calculated cost to replace a facility, not the Plant Replacement
Values. Use the values as given and do not adjust them!]
A. Replace roof on a pole barn (repair project) at $500,000 (facility replacement value: $600,000)
B. Construct a new compressed gas storage facility (Construction) at $1,850,000 (no replacement value)
C. Renovate with headquarters (repair) at $7,800,000 (facility replacement value of $15,000,000)
D. Install a temporary relocatable sprung shelter to house the gym functions while the gym is renovated
($750,000 equipment costs, $250,000 construction costs - no facility replacement value)
E. All of the Above
F. None of the Above - correct answer ✔✔D. Install a temporary relocatable sprung shelter to house the
gym functions while the gym is renovated ($750,000 equipment costs, $250,000 construction costs - no
facility replacement value)
Econ:
You are preparing a project to replace the existing poorly sized and outdated dormitory on the
installation with a dorm meeting the new Chief-of-Staff directed dorm standard, programmed for late
the following fiscal year. The overall life cycle costs of the new dorm are $50,000,000 over the next 25
years, in comparison to 'Status Quo' (using the existing dorm throughout this period) at $10,000,000 life-
cycle costs. The existing dorm indeed has life-health-safety code violations.
