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 preenrolment data? 
A.  preenrolment id 
B.  one time password 
C.  resident's name 
D.  aadhaar id 
Answer» A. preenrolment 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 ﬂowwhether a single payment or a series of paymentscan 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 ﬁveyear 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 aftertax 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 4year 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 yearend 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 10year 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 5year 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 on15112008 and it commenced its business from 1122008. The ﬁrst previous year in this case shall be: 
A.  15112008 to 3132009 
B.  1122008 to 3132009 
C.  20082009 
D.  none of the above 
Answer» A. 15112008 to 3132009 
190. 
A person leaves India permanently on 15112008.The assessment year for income earned till 15112008 in this case shall be: 
A.  200708 
B.  200809 
C.  200910 
D.  none of the above 
Answer» B. 200809 
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 201920 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 201920 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 1401 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 