EE model Quiz

Find the value of x, (F/P, x, 6) if F/P compounded quarterly is equal to 1.612226.

• A. 7%

• B. 5%

• C. 8%

• D. 6%

Find the value of y, (P/F, 6%, y) if P/F compounded bi-monthly is equal to 0.787566.

• A. 7 years

• B. 5 years

• C. 6 years

• D. 4 years

Pick up the correct reason for making conceptual (or preliminary) estimate from the following:

• (A) To have a check on a definitive cost estimate

• (B) To check quotations from contractors and/or sub-contractors

• (C) To compute target estimate for the owner while drawing and specifications are in initial stage

• (D) All of these

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 analysts

The interest calculated on the basis of 365 days a year, is known as

• (A) Interest

• (B) Ordinary simple interest

• (C) Exact simple interest

• (D) None of these

The project contractor relies on the cost of the estimate

• (A) For submission of a competitive bid for a lump-sum contract

• (B) For a unit price contract

• (C) For preparation of a definitive estimate to help negotiate contract

• (D) All of these

If a seller recovers his capital along with accumulated compensating interest not in one single lump-sum payment but in periodical equal payments, over time:

• (A) Capital Recovery Annuity is availed

• (B) Present work Annuity is availed

• (C) Sinking Fund Annuity is availed

• (D) Sinking Fund Annuity is availed

Pick up the correct statement from the following:

• (A) An annuity is a series of equal payments occurring at equal period of time

• (B) Annuity is called an equal payment or uniform payment series

• (C) An annuity may have periods of time of any length but should always be of equal length

• (D) All the above

The sunk costs include:

• (A) A past expenditure

• B) An unrecovered balance

• (C) An invested capital that cannot be retrieved

• (D) All of these

Pick up the element of the cost from the following:

• (A) Direct material

• (B) Direct labour

• (C) Over head

• (D) All of these