Engineering Econ - Pre Exam 2

Which of the following is correct when comparing the IRR and MARR of an alternative.

• If IRR < MARR, the alternative is profitable

• If IRR = MARR, the alternative is acceptable.
• If IRR > MARR, the alternative is not acceptable.
• If IRR > MARR, the alternative is profitable.

Given a MARR of 18%, which of the alternatives is profitable given the IRR?

• Manny Automobiles: IRR = 18.1%

• Sean LLC: IRR = 15.7%

• Dr. Wicks' Electronics: IRR = 10.4%

• Dan Dollar Store: IRR = 30%

What conclusion can be made about a project that has a B/C ratio ≥ 1?

• No conclusion can be made about the project

• The project is acceptable

• The project is losing money

• The project is not advisable

MARR is an acronym for...

(a)  

Unequal lives is a descriptor for scenarios where...

• The seller is older than the buyer or something like that

• The alternatives have different MARRs

• All individuals have the same life expectancy and quality of life.
• The alternatives have different useful lives (N)

Dan gets hired to teach Engineering Economics. His starting yearly salary is $4,000,000 increasing by 5% every year. With all this money, Dan rents a penthouse which has an initial security deposit of $25,000 and a yearly rent of $35,000 increasing by $1,000 every year. Which of the following equations accurately represents the scenario given i = 10%.

If two sets of cash flows are equivalent, then they have the same equivalent value at any single point in (a)   ?

Dr. Wicks has which combination of pets?

• 4 cats and 1 dog

• 3 cats and 2 dogs

• 2 cats and 1 dog

• 4 cats

• 2 cats and 2 dogs

How many LA's does Dr. Wicks have total for this course?

• 11

• 10

• 9

• 12