12/3/23, 2:19 PM Quiz 04 : Module 05: Group 9 ES-ECON - ENGINEERING ECONOMICS
Quiz 04 : Module 05
Due Nov 25 at 11:59pm Points 65 Questions 33
Available Nov 25 at 9am - Nov 25 at 11:59pm 14 hours and 59 minutes
Time Limit 150 Minutes
This quiz was locked Nov 25 at 11:59pm.
Attempt History
Attempt Time Score
LATEST Attempt 1 123 minutes 53 out of 65
Correct answers are no longer available.
Score for this quiz: 53 out of 65
Submitted Nov 25 at 10:36pm
This attempt took 123 minutes.
Question 1 1 / 1 pts
Fixed Expenses do not change in total when there is a modest change in
sales.
True
False
Question 2 1 / 1 pts
Break-even point is the point where revenues equal the total of all expenses
including the cost of goods sold
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12/3/23, 2:19 PM Quiz 04 : Module 05: Group 9 ES-ECON - ENGINEERING ECONOMICS
True
False
Question 3 1 / 1 pts
Break-even analysis is useful for companies that sell products, but not useful
to companies that provides services
True
False
Question 4 1 / 1 pts
Decreasing the fixed expenses should reduce the break-even point?
True
False
Question 5 1 / 1 pts
If a company requires a profit of $30,000, the $30,000 should be combined
with the fixed expenses in order to compute the point at which the company
will earn $30,000
True
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12/3/23, 2:19 PM Quiz 04 : Module 05: Group 9 ES-ECON - ENGINEERING ECONOMICS
False
Question 6 1 / 1 pts
Variable expenses change in total as volume changes.
True
False
Question 7 1 / 1 pts
Contribution margin is defined as sales minus variable expenses
True
False
Incorrect
Question 8 0 / 1 pts
What is the company’s contribution ratio?
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12/3/23, 2:19 PM Quiz 04 : Module 05: Group 9 ES-ECON - ENGINEERING ECONOMICS
30%
70%
42%
90%
Question 9 1 / 1 pts
What is the unit contribution margin?
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12/3/23, 2:19 PM Quiz 04 : Module 05: Group 9 ES-ECON - ENGINEERING ECONOMICS
$14
$13
$10
$12
Incorrect
Question 10 0 / 2 pts
You are considering making an $80,000 investment in a process
improvement project. Revenues are expected to grow from $50,000 in 1
year by $30,000 each year for the next four years ($50,000 first Year,
$80,000 second year, $110,000 third year and so forth) while cost are
expected to increase from $20,000 in year 1 by $10,000 each year. If there
is no salvage value at the end of five years. at MARR of 11%, What is the
NPW of the investment?
178,911
170,960
163,357
156,084
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12/3/23, 2:19 PM Quiz 04 : Module 05: Group 9 ES-ECON - ENGINEERING ECONOMICS
Question 11 2 / 2 pts
Find the net present worth of the following cash flow series at an interest rate
of 7%
4,749.62
4,568.84
4,937.65
5,133.28
Incorrect
Question 12 0 / 2 pts
You are considering making an $80,000 investment in a process
improvement project. Revenues are expected to grow from $50,000 in 1
year by $30,000 each year for the next four years ($50,000 first Year,
$80,000 second year, $110,000 third year and so forth) while cost are
expected to increase from $20,000 in year 1 by $10,000 each year. If there
is no salvage value at the end of five years. at MARR of 09%, What is the
NPW of the investment?
163,357
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12/3/23, 2:19 PM Quiz 04 : Module 05: Group 9 ES-ECON - ENGINEERING ECONOMICS
156,084
178,911
170,960
Question 13 2 / 2 pts
You are considering making an $80,000 investment in a process
improvement project. Revenues are expected to grow from $50,000 in 1
year by $30,000 each year for the next four years ($50,000 first Year,
$80,000 second year, $110,000 third year and so forth) while cost are
expected to increase from $20,000 in year 1 by $10,000 each year. If there
is no salvage value at the end of five years. at MARR of 10%, What is the
NPW of the investment?
170,960
178,911
156,084
163,357
Question 14 2 / 2 pts
You are considering making an $80,000 investment in a process
improvement project. Revenues are expected to grow from $50,000 in 1
year by $30,000 each year for the next four years ($50,000 first Year,
$80,000 second year, $110,000 third year and so forth) while cost are
expected to increase from $20,000 in year 1 by $10,000 each year. If there
is no salvage value at the end of five years. What is the present worth of the
project assuming an MARR of 18%?
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12/3/23, 2:19 PM Quiz 04 : Module 05: Group 9 ES-ECON - ENGINEERING ECONOMICS
111,256
118,440
270,962
114,200
Question 15 2 / 2 pts
Consider the following 2 projects. At MARR of 6%, What is the NPW of
Project A2?
$487,200
$477,141
$485,013
$443,706
Question 16 2 / 2 pts
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12/3/23, 2:19 PM Quiz 04 : Module 05: Group 9 ES-ECON - ENGINEERING ECONOMICS
You are considering a project with the following financial data:
Initial investment = $50M
Project Life = 10 Years
Estimated annual revenue : $26,637,217
Estimated annual operating cost = $15M
MARR = 19% per year
Salvage value = 15% of the initial investment.
What is the NPW?
1,810,145
1,910,145
1,510,145
2,210,145
Question 17 2 / 2 pts
Consider the two investments with the following sequences of cash flows. At
Marr of 15%. What is the NPW of project B?
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12/3/23, 2:19 PM Quiz 04 : Module 05: Group 9 ES-ECON - ENGINEERING ECONOMICS
21,000
11,809
25,601
16,036
Question 18 2 / 2 pts
Find the net present worth of the following cash flow series at an interest rate
of 6%
4,568.84
5,133.28
4,937.65
4,749.62
Question 19 2 / 2 pts
You are considering making an $80,000 investment in a process
improvement project. Revenues are expected to grow from $50,000 in 1
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12/3/23, 2:19 PM Quiz 04 : Module 05: Group 9 ES-ECON - ENGINEERING ECONOMICS
year by $30,000 each year for the next four years ($50,000 first Year,
$80,000 second year, $110,000 third year and so forth) while cost are
expected to increase from $20,000 in year 1 by $10,000 each year. If there
is no salvage value at the end of five years. With an MARR of 18%, What is
the net future worth of the cash flows on year 3?
106,200
110,000
82,152
97,468
Question 20 2 / 2 pts
You are considering making an $80,000 investment in a process
improvement project. Revenues are expected to grow from $50,000 in 1
year by $30,000 each year for the next four years ($50,000 first Year,
$80,000 second year, $110,000 third year and so forth) while cost are
expected to increase from $20,000 in year 1 by $10,000 each year. If there
is no salvage value at the end of five years. With an MARR of 18%, What is
the net future worth of the cash flows on year 0?
100,000
-80,000
-183,021
Question 21 2 / 2 pts
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12/3/23, 2:19 PM Quiz 04 : Module 05: Group 9 ES-ECON - ENGINEERING ECONOMICS
You are considering making an $80,000 investment in a process
improvement project. Revenues are expected to grow from $50,000 in 1
year by $30,000 each year for the next four years ($50,000 first Year,
$80,000 second year, $110,000 third year and so forth) while cost are
expected to increase from $20,000 in year 1 by $10,000 each year. If there
is no salvage value at the end of five years. at MARR of 12%, What is the
NFW of the investment?
275,266
275,073
275,332
275,276
Question 22 2 / 2 pts
You are considering making an $80,000 investment in a process
improvement project. Revenues are expected to grow from $50,000 in 1
year by $30,000 each year for the next four years ($50,000 first Year,
$80,000 second year, $110,000 third year and so forth) while cost are
expected to increase from $20,000 in year 1 by $10,000 each year. If there
is no salvage value at the end of five years. at MARR of 09%, What is the
NFW of the investment?
275,332
275,276
275,266
275,073
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12/3/23, 2:19 PM Quiz 04 : Module 05: Group 9 ES-ECON - ENGINEERING ECONOMICS
Incorrect
Question 23 0 / 2 pts
You are considering making an $80,000 investment in a process
improvement project. Revenues are expected to grow from $50,000 in 1
year by $30,000 each year for the next four years ($50,000 first Year,
$80,000 second year, $110,000 third year and so forth) while cost are
expected to increase from $20,000 in year 1 by $10,000 each year. If there
is no salvage value at the end of five years. at MARR of 09%, What is the
Annuity Worth of the investment?
45,098.72
44,199.55
43,299.11
45,996.54
Question 24 2 / 2 pts
You are considering making an $80,000 investment in a process
improvement project. Revenues are expected to grow from $50,000 in 1
year by $30,000 each year for the next four years ($50,000 first Year,
$80,000 second year, $110,000 third year and so forth) while cost are
expected to increase from $20,000 in year 1 by $10,000 each year. If there
is no salvage value at the end of five years. What is the annuity worth of the
project assuming an MARR of 18%?
37,874
25,424
42,604
35,909
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12/3/23, 2:19 PM Quiz 04 : Module 05: Group 9 ES-ECON - ENGINEERING ECONOMICS
Incorrect
Question 25 0 / 2 pts
You are considering making an $80,000 investment in a process
improvement project. Revenues are expected to grow from $50,000 in 1
year by $30,000 each year for the next four years ($50,000 first Year,
$80,000 second year, $110,000 third year and so forth) while cost are
expected to increase from $20,000 in year 1 by $10,000 each year. If there
is no salvage value at the end of five years. at MARR of 11%, What is the
Annuity Worth of the investment?
43,299.11
45,996.54
45,098.72
44,199.55
Question 26 3 / 3 pts
You purchased a piece of property at $450,000 six years ago. You can sell
the property at $650,000. what is the rate of return on this real estate
investment?
4.17%
4.70%
6.32%
5.39%
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12/3/23, 2:19 PM Quiz 04 : Module 05: Group 9 ES-ECON - ENGINEERING ECONOMICS
Question 27 3 / 3 pts
Consider the two investments with the following sequences of cash flows. At
Marr of 15%. What is the IRR of project A?
57.91%
35.15%
25.66%
15.01%
Incorrect
Question 28 0 / 3 pts
You purchased a piece of property at $450,000 ten years ago. You can sell
the property at $650,000. what is the rate of return on this real estate
investment?
3.75%
4.70%
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12/3/23, 2:19 PM Quiz 04 : Module 05: Group 9 ES-ECON - ENGINEERING ECONOMICS
4.17%
6.32%
Question 29 3 / 3 pts
Three public investments alternatives are available: A1, A2 and A3. Their
respective total benefits, costs, and first costs are given in present worth as
follows: These alternatives have the same service life. Assuming that there is
no do nothing alternative, which project would you select using the following.
What is the BC Ratio of A3?
1.40
1.43
1.85
2.00
Question 30 3 / 3 pts
A city government is considering increasing the capacity of the current waste
water treatment plant. Th estimated financial data for the project are as
follows: Calculate the benefit-cost ratio for this capacity expansion. What is
BC(5%)
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12/3/23, 2:19 PM Quiz 04 : Module 05: Group 9 ES-ECON - ENGINEERING ECONOMICS
2.58
3.85
1.85
1.38
Question 31 3 / 3 pts
Three public investments alternatives are available: A1, A2 and A3. Their
respective total benefits, costs, and first costs are given in present worth as
follows: These alternatives have the same service life. Assuming that there is
no do nothing alternative, which project would you select using the following.
What is the PI of A2?
1.75
1.67
3.00
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12/3/23, 2:19 PM Quiz 04 : Module 05: Group 9 ES-ECON - ENGINEERING ECONOMICS
1.57
Question 32 3 / 3 pts
Three public investments alternatives are available: A1, A2 and A3. Their
respective total benefits, costs, and first costs are given in present worth as
follows: These alternatives have the same service life. Assuming that there is
no do nothing alternative, which project would you select using the following.
What is the PI of A1?
1.75
3.00
1.67
1.57
Question 33 3 / 3 pts
Three public investments alternatives are available: A1, A2 and A3. Their
respective total benefits, costs, and first costs are given in present worth as
follows: These alternatives have the same service life. Assuming that there is
no do nothing alternative, which project would you select using the following.
What is the BC Ratio of A1?
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12/3/23, 2:19 PM Quiz 04 : Module 05: Group 9 ES-ECON - ENGINEERING ECONOMICS
1.85
1.40
1.43
2.00
Quiz Score: 53 out of 65
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