8. The CRF (ep) is also known as: [CRF(EP) 8% 7], where
A. 8% is the rate of interest per year
B. money is borrowed for n=7 years
C. both a and b
D. Neither a nor b
9. Pick up the correct statement from the following :
A. Engineering economy is a collection of mathematical techniques which simplify economic comparisons
B. Engineering economy is a decision assistance tool by which one method will be chosen as the most economically one.
C. For understanding the engineering economy, one should be able to classify the basic terminology and fundamental concepts of economy.
D. All of these.
10. The alternatives which are standalone solutions for given situations in engineering involve :
A. a purchase cost (first cost)
B. the anticipated life of the assets
C. the yearly costs of maintaining the assets (annual maintenance and operating cost)
D. All of these
11. Pick up the correct statement from the following :
A. The change in the amount of money over a given time period is called 'time value' money, a most important concept in engineering economy.
B. The manifestation of the time value of money is termed as interest.
C. Interest on borrowing = present amount owed original loan
D. All of these
12. Pick up the correct statement from the following :
A. The receipts and disbursements in a given time interval are referred to as cash flow.
B. The assumptions that all cash flows occur at the end of the interest period, is known as the end of period convention.
C. A cash flow diagram is a graphical representation of cash flows drawn on a time scale.
D. All of these
13. With reference to the repayment schedule of Rs 5000 for 5 years shown in Table 1, pick up the correct statement from the following:
A. No interest is recovered until fifth year
B. No principal is recovered until the fifth year
C. Interest accumulates each year on the total of principal and all accumulated interest.
D. All of these.
14. In a cash-flow diagram :
A. Time 0 is considered to be the present
B. Time 1 is considered to be the end of time period 1.
C. A vertical arrow pointing up indicates a positive cash flow
D. All of these
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