Accredited Test Bank Solution For
Engineering Economy, 9th Edition by
Blank [All Lessons Included]
Complete Chapter Solution Manual
are Included (Ch.1 to Ch.19)
Rapid Download
Quick Turnaround
Complete Chapters Provided
, Table of Contents are Given Below
"Engineering Economy, 9th Edition" by Leland T. Blank and Anthony Tarquin is structured into several chapters
that cover fundamental and advanced topics in engineering economics. The chapters are as follows:
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
5. Present Worth Analysis
6. Annual Worth Analysis
7. Rate of Return Analysis: One Project
8. Rate of Return Analysis: Multiple Alternatives
9. Benefit/Cost Analysis and Public Sector Economics
10. Project Financing and Noneconomic Attributes
11. Replacement and Retention Decisions
12. Independent Projects with Budget Limitation
13. Breakeven and Payback Analysis
14. Effects of Inflation
15. Cost Estimation and Indirect Cost Allocation
16. Depreciation and Depletion Methods
17. After-Tax Economic Analysis
18. Sensitivity Analysis and Staged Decisions
19. Decision Making under Risk
This comprehensive structure provides a solid foundation for understanding and applying engineering economic
principles in various decision-making scenarios.
PAGE 1
,Chapter 1: Foundations of Engineering Economy
1. Which of the following best defines Engineering Economy?
A) The study of mechanical systems in engineering
B) The application of economic principles to engineering projects
C) The analysis of environmental impacts of engineering
D) The design of electrical circuits for cost efficiency
Answer: B) The application of economic principles to engineering projects
Explanation: Engineering Economy involves the systematic evaluation of the economic merits of proposed
solutions to engineering problems. It applies economic principles to decision-making in engineering projects to
ensure cost-effectiveness and optimal resource utilization.
2. Which term refers to the rate at which money is invested or borrowed?
A) Depreciation
B) Inflation
C) Interest
D) Amortization
Answer: C) Interest
Explanation: Interest is the cost of borrowing money or the return on investment for lending money. It is a
fundamental concept in Engineering Economy as it affects the time value of money.
3. What is the primary goal of an engineer when conducting an economic analysis?
A) To maximize technical performance
B) To minimize environmental impact
C) To determine the most cost-effective solution
D) To comply with safety regulations
Answer: C) To determine the most cost-effective solution
Explanation: The primary goal in economic analysis is to identify the solution that provides the best value for
money, balancing costs and benefits to achieve cost-effectiveness.
4. Which of the following is NOT typically considered a cost in Engineering Economy?
A) Initial capital cost
B) Operating and maintenance costs
C) Salvage value
D) Opportunity cost
PAGE 2
, Answer: C) Salvage value
Explanation: Salvage value is considered a benefit or a recovery of some of the initial investment, not a cost. It
represents the residual value of an asset at the end of its useful life.
5. What does the term "life-cycle cost" refer to?
A) The initial purchase price of an asset
B) The total cost of owning and operating an asset over its entire life
C) The cost of disposing of an asset
D) The cost incurred during the first year of an asset's use
Answer: B) The total cost of owning and operating an asset over its entire life
Explanation: Life-cycle cost analysis accounts for all costs associated with an asset from acquisition through
disposal, providing a comprehensive view of its total economic impact.
6. In Engineering Economy, what is the significance of the break-even point?
A) It indicates when total revenues equal total costs
B) It marks the end of an engineering project
C) It is the point where an investment begins to lose money
D) It signifies when operating costs exceed initial costs
Answer: A) It indicates when total revenues equal total costs
Explanation: The break-even point is where total revenues from a project or investment equal the total costs,
indicating neither profit nor loss.
7. Which financial statement summarizes an organization's revenues and expenses over a period?
A) Balance Sheet
B) Income Statement
C) Cash Flow Statement
D) Statement of Shareholders' Equity
Answer: B) Income Statement
Explanation: The income statement provides a summary of revenues, expenses, and profits or losses over a
specific period, essential for economic analysis in engineering projects.
PAGE 3
Engineering Economy, 9th Edition by
Blank [All Lessons Included]
Complete Chapter Solution Manual
are Included (Ch.1 to Ch.19)
Rapid Download
Quick Turnaround
Complete Chapters Provided
, Table of Contents are Given Below
"Engineering Economy, 9th Edition" by Leland T. Blank and Anthony Tarquin is structured into several chapters
that cover fundamental and advanced topics in engineering economics. The chapters are as follows:
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
5. Present Worth Analysis
6. Annual Worth Analysis
7. Rate of Return Analysis: One Project
8. Rate of Return Analysis: Multiple Alternatives
9. Benefit/Cost Analysis and Public Sector Economics
10. Project Financing and Noneconomic Attributes
11. Replacement and Retention Decisions
12. Independent Projects with Budget Limitation
13. Breakeven and Payback Analysis
14. Effects of Inflation
15. Cost Estimation and Indirect Cost Allocation
16. Depreciation and Depletion Methods
17. After-Tax Economic Analysis
18. Sensitivity Analysis and Staged Decisions
19. Decision Making under Risk
This comprehensive structure provides a solid foundation for understanding and applying engineering economic
principles in various decision-making scenarios.
PAGE 1
,Chapter 1: Foundations of Engineering Economy
1. Which of the following best defines Engineering Economy?
A) The study of mechanical systems in engineering
B) The application of economic principles to engineering projects
C) The analysis of environmental impacts of engineering
D) The design of electrical circuits for cost efficiency
Answer: B) The application of economic principles to engineering projects
Explanation: Engineering Economy involves the systematic evaluation of the economic merits of proposed
solutions to engineering problems. It applies economic principles to decision-making in engineering projects to
ensure cost-effectiveness and optimal resource utilization.
2. Which term refers to the rate at which money is invested or borrowed?
A) Depreciation
B) Inflation
C) Interest
D) Amortization
Answer: C) Interest
Explanation: Interest is the cost of borrowing money or the return on investment for lending money. It is a
fundamental concept in Engineering Economy as it affects the time value of money.
3. What is the primary goal of an engineer when conducting an economic analysis?
A) To maximize technical performance
B) To minimize environmental impact
C) To determine the most cost-effective solution
D) To comply with safety regulations
Answer: C) To determine the most cost-effective solution
Explanation: The primary goal in economic analysis is to identify the solution that provides the best value for
money, balancing costs and benefits to achieve cost-effectiveness.
4. Which of the following is NOT typically considered a cost in Engineering Economy?
A) Initial capital cost
B) Operating and maintenance costs
C) Salvage value
D) Opportunity cost
PAGE 2
, Answer: C) Salvage value
Explanation: Salvage value is considered a benefit or a recovery of some of the initial investment, not a cost. It
represents the residual value of an asset at the end of its useful life.
5. What does the term "life-cycle cost" refer to?
A) The initial purchase price of an asset
B) The total cost of owning and operating an asset over its entire life
C) The cost of disposing of an asset
D) The cost incurred during the first year of an asset's use
Answer: B) The total cost of owning and operating an asset over its entire life
Explanation: Life-cycle cost analysis accounts for all costs associated with an asset from acquisition through
disposal, providing a comprehensive view of its total economic impact.
6. In Engineering Economy, what is the significance of the break-even point?
A) It indicates when total revenues equal total costs
B) It marks the end of an engineering project
C) It is the point where an investment begins to lose money
D) It signifies when operating costs exceed initial costs
Answer: A) It indicates when total revenues equal total costs
Explanation: The break-even point is where total revenues from a project or investment equal the total costs,
indicating neither profit nor loss.
7. Which financial statement summarizes an organization's revenues and expenses over a period?
A) Balance Sheet
B) Income Statement
C) Cash Flow Statement
D) Statement of Shareholders' Equity
Answer: B) Income Statement
Explanation: The income statement provides a summary of revenues, expenses, and profits or losses over a
specific period, essential for economic analysis in engineering projects.
PAGE 3
