101. |
Record date of birth of the resident, indicating day, month and in the relevant field. |
A. | initial |
B. | surname |
C. | year |
D. | name |
Answer» C. year |
102. |
has to be recorded by the Enrolment Agency as declared by the enrollee in the box provided by recording Male, Female or Transgender. |
A. | date of birth |
B. | gender |
C. | residential address |
D. | fingerprint |
Answer» B. gender |
103. |
Which of the following is used to retrieve pre-enrolment data? |
A. | pre-enrolment id |
B. | one time password |
C. | resident's name |
D. | aadhaar id |
Answer» A. pre-enrolment id |
104. |
The factors of time and are the defining aspects of any engineering economic decisions |
A. | uncertainty |
B. | certainty |
Answer» A. uncertainty |
105. |
Economic decisions differ in a fundamental way from the types of decisions typically encountered in engineering design. |
A. | true |
B. | false |
Answer» A. true |
106. |
ENGINEERING ECONOMICS INVOLVES |
A. | formulating |
B. | estimating |
C. | evaluating economic outcomes |
D. | all |
Answer» D. all |
107. |
The factors of time and uncertainty are the defining aspects of any engineering economic decisions |
A. | true |
B. | false |
Answer» A. true |
108. |
An instant dollar is worth more than a distant dollar |
A. | true |
B. | false |
Answer» A. true |
109. |
engineering economic decision refers to all investment decisions relating to engineering projects. |
A. | true |
B. | false |
Answer» A. true |
110. |
engineering economic decision is the evaluation of costs and benef associated with making a capital investment. |
A. | true |
B. | false |
Answer» A. true |
111. |
Engineering economics is needed for many kinds of decision making |
A. | true |
B. | false |
Answer» A. true |
112. |
The factors of and uncertainty are the defining aspects of any engineering economic decisions |
A. | time |
B. | investment |
Answer» A. time |
113. |
Additional risk is not taken without an expected additional return of suitable magnitude |
A. | true |
B. | false |
Answer» A. true |
114. |
Money has a time value because it can earn more money over time (earning power). |
A. | true |
B. | false |
Answer» A. true |
115. |
F dollars at the end of period N is equal to a single sum P dollars now, if your earning power is measured in terms of interest rate i. |
A. | true |
B. | false |
Answer» A. true |
116. |
Initial amount of money in transactions involving debt or investments is called the principal (P). |
A. | true |
B. | false |
Answer» A. true |
117. |
engineering economic decision is the evaluation of costs and benef associated with making a capital . |
A. | expenditure |
B. | investment. |
Answer» B. investment. |
118. |
Initial amount of money in transactions involving debt or investments is called |
A. | interest |
B. | principal |
Answer» B. principal |
119. |
How many years would it take an investment to double at 10% annual interest? |
A. | 7.27 years |
B. | 8 years |
C. | 9 years |
Answer» A. 7.27 years |
120. |
Marginal revenue must exceed marginal cost, in order to carry out a profitable increase of operations |
A. | true |
B. | false |
Answer» A. true |
121. |
A plan for receipts or disbursements (An) that yields a particular cash flow pattern over a specified length of time is called monthly equal payment |
A. | true |
B. | false |
Answer» A. true |
122. |
At 8% interest, what is the equivalent worth of $2,042 after 5 years from now? |
A. | 5000 |
B. | 4000 |
C. | 2000 |
D. | 3000 |
Answer» D. 3000 |
123. |
If you had $2,000 now and invested it at 10%, how much would it be worth in 8 years? |
A. | 4200 |
B. | 4287 |
C. | 5000 |
Answer» B. 4287 |
124. |
Money has a time value because its purchasing power changes over time (inflation). |
A. | true |
B. | false |
Answer» A. true |
125. |
Interest is the cost of moneyas a cost to the borrower and an earning to the lender |
A. | true |
B. | false |
Answer» A. true |
126. |
Cash Flow is the movement of money (in or out) of a project |
A. | true |
B. | false |
Answer» A. true |
127. |
the practice of charging an interest rate to an initial sum and to any previously accumulated interest that has not been withdrawn. |
A. | compound interest |
B. | simple interest |
Answer» A. compound interest |
128. |
Given P = $1,000 , i = 8% and N = 3 years calculate future value using Compound interest |
A. | 1200 |
B. | 1259.71 |
Answer» B. 1259.71 |
129. |
Calculate future value on the principal amount of Rs. 2000 at the interest rate of 6% for the period of 5 years using simple interest |
A. | 1200 |
B. | 1259.71 |
C. | 2600 |
D. | none |
Answer» C. 2600 |
130. |
Economic equivalence refers to the fact that a cash flow-whether a single payment or a series of payments-can be converted to an equivalent cash flow at any point in time. |
A. | true |
B. | false |
Answer» A. true |
131. |
If you deposit P dollars today for N periods at i, you will have F dollars at the end of period N. |
A. | true |
B. | false |
Answer» A. true |
132. |
You want to set aside a lump sum amount today in a savings account that earns 7% annual interest to meet a future expense in the amount of $10,000 to be incurred in 6 years. How much do you need to deposit today? |
A. | 5000 |
B. | 6663 |
C. | 8000 |
Answer» B. 6663 |
133. |
A fund accumulated by periodic deposits and reserved exclusively for a specific purpose, such as retirement of a debt |
A. | sinking fund |
B. | principal |
C. | interest |
Answer» A. sinking fund |
134. |
A fund created by making periodic deposits (usually equal) at compound interest in order to accumulate a given sum at a given future time for some specific purpose is sinking fund |
A. | true |
B. | false |
Answer» A. true |
135. |
the practice of charging an interest rate only to an initial sum (principal amount) is |
A. | compound interest |
B. | simple interest |
Answer» B. simple interest |
136. |
Suppose that you invest $1 for 1 year at 18% compounded monthly. How much interest would you earn? |
A. | 19.56 % compounded annu |
B. | 18.56 % compounded a |
C. | 20.56 % compounded annually |
Answer» A. 19.56 % compounded annu |
137. |
Effective Interest Rate is Actual interest earned or paid in a year or some other time period |
A. | true |
B. | false |
Answer» A. true |
138. |
Suppose that you invest $1 for 1 year at 18% compounded monthly. How much interest would you earn? |
A. | 19.56 % compounded annu |
B. | 18% compounded mon |
C. | 1.5% per month for 12 |
D. | all true |
Answer» D. all true |
139. |
Nominal Interest Rate is Interest rate quoted based on an annual period |
A. | true |
B. | false |
Answer» A. true |
140. |
The annual equivalent worth (AE) criterion provides a basis for measuring investment worth by determining equal payments on an annual basis. |
A. | true |
B. | false |
Answer» A. true |
141. |
When only costs are involved, the AE method is sometimes called the annual equivalent cost method. |
A. | true |
B. | false |
Answer» A. true |
142. |
In AE analysis revenues must cover two kinds of costs:– Operating costs and Capital recovery costs |
A. | true |
B. | false |
Answer» A. true |
143. |
Operating costs are incurred by the operation of physical plants or equipment needed to provide service |
A. | true |
B. | false |
Answer» A. true |
144. |
Capital recovery costs are incurred by purchasing assets to be used in production and service. |
A. | true |
B. | false |
Answer» A. true |
145. |
Consider a machine that costs $20,000 and has a five-year useful life.At the end of the five years, it can be sold for $4,000 after all tax adjustments have been factored in. If the firm could earn an after-tax revenue of $4,400 per year with this machine, should it be purchased at an interest rate of 10%? (All benefits and costs associated with the machine are accounted for in these figures.) |
A. | -220.76 |
B. | -200 |
C. | -240 |
Answer» A. -220.76 |
146. |
Inflation is a loss in the purchasing power of money over time. |
A. | true |
B. | false |
Answer» A. true |
147. |
is a loss in the purchasing power of money over time. |
A. | inflation |
B. | deflation |
Answer» A. inflation |
148. |
The same dollar amount buys less of an item over time is |
A. | inflation |
B. | deflation |
Answer» A. inflation |
149. |
Consumer Price Index (CPI) Measures prices of typical purchases made by consumers, based on a typical market basket of goods and services required by average consumers |
A. | true |
B. | false |
Answer» A. true |
150. |
CPI does not take into the account the price of raw material, finished product and operating cost |
A. | true |
B. | false |
Answer» A. true |
151. |
PPI measures average change over a time in selling prices by domestic producers of goods and services. |
A. | true |
B. | false |
Answer» A. true |
152. |
Inflation rate is defined as the rate at which the cost general level of goods and services increases resulting in decreases of purchasing |
A. | true |
B. | false |
Answer» A. true |
153. |
Actual (current) dollars (An)is the dollar value that is “influenced” by inflation. |
A. | true |
B. | false |
Answer» A. true |
154. |
Actual (current) dollars (An)is the dollar value that is “influenced” by . |
A. | deflation |
B. | inflation |
Answer» B. inflation |
155. |
dollars is the dollar value that is “influenced” by inflation. |
A. | actual |
B. | constant |
Answer» A. actual |
156. |
Constant (real) dollars reflect constant purchasing power independent of the passage of time |
A. | true |
B. | false |
Answer» A. true |
157. |
The current gasoline price is $4.15, and it is projected to increase next year by 5%, and 8% the following year, and -3% the third year. What is the average inflation rate for the projected gasoline price for the next 3 years? |
A. | 0.0323 |
B. | 0.0333 |
C. | 0.0533 |
D. | 0.03 |
Answer» A. 0.0323 |
158. |
If the inflation rate is 6% per year and the market interest rate is known to be 15% per year. What is the implied real interest rate in this inflationary economy? |
A. | 0.1145 |
B. | 0.09 |
C. | 0.08 |
D. | 0.0849 |
Answer» D. 0.0849 |
159. |
If you experience a 6 % annual inflation, how long does it take to see the purchasing power being reduced in half? |
A. | 13 years |
B. | 10 years |
C. | 12 years |
D. | 11years |
Answer» C. 12 years |
160. |
The CPI for 2000 was 171.2 and the projected CPI for 2008 is 220. What is the general inflation rate over the last 8 years? |
A. | 0.0365 |
B. | 0.061 |
C. | 0.0318 |
D. | 0.0283 |
Answer» C. 0.0318 |
161. |
The average starting salary for engineers for 2008 is $53,000. What is the equivalent salary in terms of purchasing power of 2000? Assume that the general inflation rate over the last 8 years is known to be 4%. |
A. | 34980 |
B. | 38727 |
C. | 72534 |
D. | 40276 |
Answer» C. 72534 |
162. |
You are considering purchasing a $1,000 bond with a coupon rate of 9.5%, interest payable annually. If the current inflation rate is 4% per year, which will continue in the foreseeable future, what would be the real rate of return if you sold the bond at $1,080 after 2 years? |
A. | about 9.5% |
B. | about 13.26% |
C. | about 9.26% |
D. | about 8.9% |
Answer» D. about 8.9% |
163. |
You are purchasing an automobile priced at $20,000 by borrowing at 12% interest compounded monthly. The loan will be repaid in monthly installments for five years. What is the constant dollar value (value at the time of financing) of the 36th payment of this loan, if the general inflation rate is 5% compounded monthly? |
A. | 361.91 |
B. | 383.66 |
C. | 444.89 |
D. | 396.02 |
Answer» B. 383.66 |
164. |
A couple wants to save for their daughter’s college expense. The daughter will enter college 8 years from now and she will need
|
A. | 11945 |
B. | 11838 |
C. | 12538 |
D. | 12142 |
Answer» B. 11838 |
165. |
An investment project costs P. It is expected to have an annual net cash flow of 0.125P for 20 years. What is the project’s payback period? |
A. | 6 years |
B. | 0 year |
C. | 11 year |
D. | 8 year |
Answer» D. 8 year |
166. |
Which of the following statements is incorrect? |
A. | the simplicity of the payback period method is one of its most appealing qualities even though it fails to measure project profitability. |
B. | if two investors are considering the same project, the payback period will be longer for the investor with the higher marr. |
C. | considering the cost of funds in a payback calculation is equivalent to finding the time period when the project balance becomes zero. |
D. | if you were to consider the cost of funds in a payback period calculation, you would have to wait longer to breakeven as you increase the interest rate. |
Answer» B. if two investors are considering the same project, the payback period will be longer for the investor with the higher marr. |
167. |
Find the net present worth of the following cash flow series at an interest rate of 10% |
A. | $550 < pw(10%) ≤ $600 |
B. | $600 < pw(10%) ≤ $650 |
C. | $500 < pw(10%) ≤ $550 |
D. | $650 < pw(10%) ≤ $700 |
Answer» B. $600 < pw(10%) ≤ $650 |
168. |
You are considering buying an old house that you will convert into an office building for rental. Assuming that you will own the property for 10 years, how much would you be willing to pay for the old house now given the following financial data? |
A. | 250100 |
B. | 232316 |
C. | 201205 |
D. | 218420 |
Answer» D. 218420 |
169. |
Your R&D group has developed and tested a computer software package that assists engineers to control the proper chemical mix for the various process manufacturing industries. If you decide to market the software, your first year operating net cash flow is estimated to be
|
A. | 2887776 |
B. | 2766344 |
C. | 2047734 |
D. | 2507621 |
Answer» C. 2047734 |
170. |
Find the capitalized equivalent worth for the project cash flow series at an interest rate of 10%. |
A. | ce(10%) ⇓ = ⇓ $1,753 |
B. | ce(10%) ⇓ = ⇓ $1,548 |
C. | ce(10%) ⇓ = ⇓ $1,500 |
D. | ce(10%) ⇓ = ⇓ $1,476 |
Answer» B. ce(10%) ⇓ = ⇓ $1,548 |
171. |
The following table contains a summary of how a project’s balance is expected to change over its 5 year service life at 10% interest.:Which of the following statements is incorrect? |
A. | the net present worth of the project at 10% interest is $1,242 |
B. | the required additional investment at the end of period 1 is $500 |
C. | the net future of the project at 10% interest is $2,000 |
D. | within 2 years, the company will recover all its investments and the cost of funds (interest) from the project |
Answer» B. the required additional investment at the end of period 1 is $500 |
172. |
Reconsider the project balance table calculated at 10% given in 5.9.:Which of the following statements is correct? |
A. | the cash flow in period 3 is $240 |
B. | the project is not profitable at i ⇓ = ⇓ 10%. |
C. | the conventional payback period is 1.7 years |
D. | the net present worth of the project is $2,000 |
Answer» A. the cash flow in period 3 is $240 |
173. |
A newly constructed water treatment facility cost $2 million. It is estimated that the facility will need renovating every 30 years at a cost of $1 million. Annual repairs and maintenance are estimated to be
|
A. | 3579806 |
B. | 3877482 |
C. | 4301205 |
D. | 3360343 |
Answer» B. 3877482 |
174. |
Consider the following two investment alternatives:Suppose that your firm needs either machine for only 2 years. The net proceeds from the sale of machine B are estimated to be $200. What should be the required net proceeds from the sale of machine A so that both machines could be considered economically indifferent at an interest rate of 10%? |
A. | 850 |
B. | 700 |
C. | 750 |
D. | 800 |
Answer» C. 750 |
175. |
Gene Research, Inc. just finished a 4-year R&D and clinical trials successfully and expects a quick approval from the Food and Drug
|
A. | $524 million |
B. | $105 million |
C. | $420 million |
D. | $494 million |
Answer» A. $524 million |
176. |
A manufacturing company is considering the purchase of a new CNC lathe, which will cost $60,000 and has an annual maintenance cost of
|
A. | 135928 |
B. | 132275 |
C. | 114487 |
D. | 72275 |
Answer» B. 132275 |
177. |
A manufacturing company is considering two mutually exclusive machines E1 and E2 with the following cash flow information:Which machine would you recommend if the company needs either machine for only 3 years? Assume a MARR of 12% |
A. | project e1 |
B. | indifferent |
C. | cannot compare without knowing the year-end salvage values over their service lives |
D. | project e2 |
Answer» D. project e2 |
178. |
Consider a project with a first cost (investment) of $250,000, an annual O&M cost of $50,000, annual revenue of $160,000, and a salvage value of $40,000 after a 10-year life. Find the annual worth of the project assuming an interest of 13% per year. |
A. | 35867 |
B. | 81000 |
C. | 82445 |
D. | 66099 |
Answer» D. 66099 |
179. |
Find the annual equivalent worth for the following infinite cash flow series at an interest rate of 10%: |
A. | 461.2 |
B. | 445.2 |
C. | 985.4 |
D. | 438.6 |
Answer» D. 438.6 |
180. |
Your firm has purchased an injection molding machine at a cost of $100,000. The machine’s useful life is estimated at 8 years. Your accounting department has estimated the capital cost for this machine at about $25,455 per year. If your firm’s MARR is 20%, how much salvage value do you think the accounting department assumed at the end of 8 years? |
A. | 12000 |
B. | 9000 |
C. | 10000 |
D. | 11000 |
Answer» C. 10000 |
181. |
You just purchased a pin inserting machine to relieve some bottleneck problems that have been created in manufacturing a PC board. The machine cost $56,000 and has an estimated service life of 5 years. At that time, the estimated salvage value would be $5,000. The machine is expected to operate 2,500 hours per year. The expected annual operating and maintenance cost would be $6,000. If your firm’s interest rate is 15%, what would be the machine cost per hour? |
A. | 8.79 |
B. | 7.85 |
C. | 11.85 |
D. | 5.89 |
Answer» A. 8.79 |
182. |
The following infinite cash flow series has a rate of return of 10%. Determine the unknown value of X. |
A. | 120 |
B. | 100 |
C. | 82 |
D. | 90 |
Answer» D. 90 |
183. |
An asset with a first cost of $100,000 is depreciated over 5-year period. It is expected to have a $10,000 salvage value at the end of 5 years.
|
A. | 82000 |
B. | 90000 |
C. | 64000 |
D. | 60000 |
Answer» C. 64000 |
184. |
The rate of tax that is leivable on STCG arising from transfer of Equity shares of a Company or units of an Equity oriented fund is |
A. | 0.1 |
B. | 0.15 |
C. | 0.2 |
D. | 0.3 |
Answer» B. 0.15 |
185. |
For an employee in receipt of hostel expenditure allowance for his three children, the maximum annual allowance exempt under section 10(14) is |
A. | rs.10, 800 |
B. | rs.7,200 |
C. | rs.9,600 |
D. | rs.3,600 |
Answer» B. rs.7,200 |
186. |
For an industrial undertaking fulfilling the conditions, additional depreciation in respect of machinery costing Rs.10 lakh acquired and installed on October 3, 2005 is |
A. | rs.75,000 |
B. | rs.1,50,000 |
C. | rs.1,00,000 |
D. | none of the above |
Answer» C. rs.1,00,000 |
187. |
A.O.P should consist of : |
A. | individual only |
B. | persons other thanindividual only |
C. | both the above |
D. | none of the above |
Answer» C. both the above |
188. |
Body of individual should consist of : |
A. | individual only |
B. | persons other thanindividual only |
C. | both the above |
D. | none of the above |
Answer» A. individual only |
189. |
A new business was set up on15-11-2008 and it commenced its business from 1-12-2008. The first previous year in this case shall be: |
A. | 15-11-2008 to 31-3-2009 |
B. | 1-12-2008 to 31-3-2009 |
C. | 2008-2009 |
D. | none of the above |
Answer» A. 15-11-2008 to 31-3-2009 |
190. |
A person leaves India permanently on 15-11-2008.The assessment year for income earned till 15-11-2008 in this case shall be: |
A. | 2007-08 |
B. | 2008-09 |
C. | 2009-10 |
D. | none of the above |
Answer» B. 2008-09 |
191. |
As per section 30, which expenditure incurred for a building used for the business or profession shall not be allowed as deduction? |
A. | rent, rates and taxes |
B. | insurance of building |
C. | repairs of building |
D. | capital expenditure |
Answer» D. capital expenditure |
192. |
Group of assets falling within a class of assets comprising of tangible & intangible assets is known as : |
A. | group of assets |
B. | block of assets |
C. | set of assets |
D. | none of these |
Answer» B. block of assets |
193. |
Depreciation available, if the asset is used for less than 180 days during the year of acquisition shall be of block rate: |
A. | 50% |
B. | 20% |
C. | 100% |
D. | 15% |
Answer» A. 50% |
194. |
If the Plant & Machinery is used for less than 180 days in the year of its acquisition, then, at what rate the depreciation on that asset should be provided under section 32? |
A. | 7.5% |
B. | 15% |
C. | 20 |
D. | 10% |
Answer» A. 7.5% |
195. |
If the machinery is purchased on 4th October, 2018 then at what rate depreciation will be provided on it? |
A. | 60% |
B. | 7.5% |
C. | 15% |
D. | 10% |
Answer» B. 7.5% |
196. |
The transfer of one or more undertakings as a result of the sale for a lump sum consideration without values being assigned to the individual assets and liabilities in the sale is known as : |
A. | lump sum sale |
B. | slump sale |
C. | aggregate sale |
D. | total sale |
Answer» B. slump sale |
197. |
Rate of depreciation chargeable on fully temporary wooden structure for the assessment year 2019-20 is |
A. | 5% |
B. | 10% |
C. | 100% |
D. | 40% |
Answer» D. 40% |
198. |
Rate of depreciation chargeable on temporary wooden structure for the assessment year 2019- 20 is - A. 40% B. 10% C. 100% D. 50%. |
A. | 40% |
B. | 10% |
C. | 100% |
D. | 50% |
Answer» A. 40% |
199. |
DS acquired a building for Rs. ` 15 lakh in June, 2016 in addition to cost of land beneath the building of ` 3 lakh. It was used for personal purposes until he commenced business in June, 2018 and since then it was used for business purposes. The amount of depreciation eligible in his case for the assessment year 2019-20 would be - |
A. | rs.1,50,000 |
B. | rs.75,000 |
C. | rs.37,500 |
D. | rs.1,21,500 |
Answer» C. rs.37,500 |
200. |
XYZ Ltd is engaged in production of textile articles. Opening WDV of the block of assets was Rs.` 15, 00,000. During the year, plant was acquired under this block on 15th June 2018 amounting to Rs.` 10, 00,000. One of the asset falling within the block was sold for Rs. ` 5, 50,000 on 14-01- 2019. Rate of depreciation of the block is 15%.
|
A. | rs.` 2,92,500 |
B. | rs.`4,92,500 |
C. | rs.` 3,92,500 88 |
D. | rs.` 3,52,500 |
Answer» B. rs.`4,92,500 |