Civil engineer objective questions – Engineering Economics (Section-3)

51. According to law of supply, if the price of goods increasesthen the demand of articles

a) increases

b) decreases

c) constant

d) all of the above

52. In market, supply increases with increasing in demand, the curve found between them is

a) higher inflation rate

b) to show efficiencies

c) to show lower inflation

d) none of the above

53. The present value of an amount is……………..as compared tofuture value

a) lesser

b) greater

c) constant

d) all of the above

54. The minimum NPV for selection of any project should be

a) zero

b) less than zero

c) greater than zero

d) all of the above

55. During analysis of projects following NPV is obtained -1, 0, 0.5 and 1. Which project should be selected economically considering the maximum benefit?

a) first

b) second

c) third

d) forth

56. During analysis of projects following NPV is obtained -1, 0, 0.5 and 1. Which project should be confirmly rejected?

a) first

b) second

c) third

d) forth

57. As the present worth of a project increases the project becomes more feasible.

a) sociologically

b) economically

c) physiologically

d) biologically

58. In what case, protect is feasible?

a) PW>0

b) PW<0

c) PW is -ve

d) none of the above

59. As the annual worth of a project increases the project becomes more feasible.

a) sociologically

b) economically

c) physiologically

d) biologically

60. For the selection of any project minimum future worth shouldbe

a) zero

b) one

c) minus one

d) two

61. Internal rate of return should be

a) less than borrowing rate

b) more than borrowing rate

c) equal than borrowing rate

d) all of the above

62.Project is assumed as feasible if

a) IRR is greater than borrow rate

b) IRR is leaser than borrow rate

c) IRR is equal to borrow rate

d) none of the above

63.At what condition, project is good

a) IRR> discounted rate

b) IRR < discounted rate

c) IRR equal to discounted rate

d) none of the above

64. For the selection of any project, which criteria is followed?

a) internal rate of return

b) net present value

c) benefit cost ratio

d) all of the above

65. For the selection of any project, which one is mostly used?

a) benefit cost ratio

b) internal rate of return

c) net present value

d) average worth method

66. Calculate the internal rate of return for the project having following criteria: NPV at higher interest rate (Li)=-650lower interest rate (Li) = 5% higher interest rate (Hi) = 10%

NPV at lower interest rate (Li) =1000

a) 6.03%

b) 8.03%

c) 7.03%

d) 9.03%

67. For the analysis of any project, net present worth may be

a) positive

b) zero

c) negative

d) all of the above

68. For the selection of the project, NPV should be

a) +ve

b) -ve

c) 0

d) none of the above

69. In case of project selection which one is considered?

a) IRR

b) NPV

c) B/C ratio

d) all of the above

70. In FW method, the minimum condition which the project is feasible is

a) +ve

b) -ve

c) 0

d) none of the above

71. During analysis of any project, numerical value of net present worth is found negative then, internal rate of return should be

a) minimum discount rate

b) medium discount rate

c) maximum discount rate

d) all of the above

72. In any project 10 million rupees is invested to get an income of 1 million. Then the invested money of 10 million is called

a) cash outflow

b) cash inflow

c) equilibrium cash

d) profit cash

73. In a project equal investment is done to obtain a fixed amount in the future, this amount is known as

a) sinking fund

b) capital recovery

c) uniform series

d) all of the above

74. During calculation of IRR, NPV should be

a) positive

b) negative

c) zero

d) all of the above

a) a1

b) a2

c) a3

d) all of the above

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