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Civil Engineering Objective Questions { Engineering Economics }

22. The sunk cost include :
A. a past expenditure
B. an unrecovered balance
C. an invested capital that cannot be retrieved
D. All of these

23. In a cash flow series :
A. uniform gradient signifies that an income or disbursement changes by the same amount in each interest period.
B. Either an increase or a decrease in the amount of a cash flow is called the gradient.
C. The gradient in the cash flow may be positive or negative.
D. All of these

24. If a is the base amount expenditure, b is the increase in the operation cost? each year over a period of n years, the total cost of maintenance is :
A. a + (n + 1)b
B. a + (n ? 1)b
C. ax (n ? 1)b
D. a ? (n ? 1)b

25. Renu Bala deposits Rs 1200 now Rs 800 two year from now and Rs 1000 five years from now. If the savings bank's rate of interest in 5%, she will receive an amount of Rs X 10 years from now, where X is
A. Rs 3415
B. Rs 4225
C. Rs 4413
D. Rs 4826

26. Ratio analysis of a construction firm is used for analysis by :
A. share holders
B. firm's management
C. Banks of the firm
D. financial analysis

27. The financial analysis helps to judge :
A. The operational efficiency of the firm
B. The financial position of the firm.
C. Both (a) and (b)
D. Neither (a) nor (b)

28. The financial analysis :
A. helps a share holder to compare the expected return on his investment in the firm against the expected return from other alternative investment.
B. helps a bank to know the financial position of the firm for granting a loan to the firm.
C. helps to judge the success of the firm's financial plans.
D. All of these.

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