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Engineering Economics

This document contains an engineering economics assignment for a student named Vincent Dave S. Cortez. The assignment contains 10 true/false questions related to engineering economic concepts like present worth comparisons, payback period, fixed and variable costs, equipment capital recovery, margin of safety, and profit. The student answered all 10 questions correctly by marking them as either true or false.

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36 views1 page

Engineering Economics

This document contains an engineering economics assignment for a student named Vincent Dave S. Cortez. The assignment contains 10 true/false questions related to engineering economic concepts like present worth comparisons, payback period, fixed and variable costs, equipment capital recovery, margin of safety, and profit. The student answered all 10 questions correctly by marking them as either true or false.

Uploaded by

cortez vincent
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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UNIVERSITY OF SCIENCE AND TECHNOLOGY OF SOUTHERN

PHILIPPINES Cagayan de Oro City Campus


Civil Engineering Department

ES301: ENGINEERING ECONOMY


ASSIGNMENT NO.1

Name : Vincent Dave S. Cortez

Section : Course: ES301: ENGINEERING ECONOMY Date :

I. True or False. (2points each)


True False
1. When making present worth comparisons, always use the same ✅
time period in order to take into account the full benefits and costs
of each alternative.

2. If an investment of 1,000,000 yielded an annual income of ✅


100,000 then the payback period would be 8 years.

3. The project with the shorter payback period is the preferred ✅


investment .

4. Payback period is the best and sole criterion for comparing and ✅
evaluating alternatives.

5. Useful lives must be the same for all alternatives and equal to ✅
the study period.

6. Fixed costs are costs that change, in total, despite changes in ✅


production level.

7. Variable costs are costs that do not change, in total, in direct ✅


proportion to changes in volume of activity.

8. Equipment capital recovery is an example of fixed cost. ✅

9. If revenue is the money earned, and expenses are paid from the ✅
revenue, then profit is the remaining revenue left after expenses.

10. If the distance of margin of safety is long, the profit will be large ✅
even there is a drop in production and vice-versa.

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