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Information System And Engineering MCQ's

A manufacturing company is considering the purchase of a new CNC lathe, which will cost $60,000 and has an annual maintenance cost of $8,000. A few parts in the lathe need to be replaced once every 5 years to enable smooth running of the lathe. This would cost an additional $20,000 (once every 5 years). Assuming that the lathe would last 15 years under these conditions, what is the total equivalent cost (present value) of this investment at an interest rate of 12%? (Assume that there will be no appreciable salvage value at the end of 15 years.)

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Question and answers in Information System and Engineering, Information System and Engineering multiple choice questions and answers, Information System and Engineering Important MCQs, Solved MCQs for Information System and Engineering, Information System and Engineering MCQs with answers PDF download

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.

Find the annual equivalent worth for the following infinite cash flow series at an interest rate of 10%:

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?

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?

The following infinite cash flow series has a rate of return of 10%. Determine the unknown value of X.

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. Using the straight-line method, what is the book value at the end of year 2?

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

For an employee in receipt of hostel expenditure allowance for his three children, the maximum annual allowance exempt under section 10(14) is

A.O.P should consist of :

Body of individual should consist of :

The factors of time and uncertainty are the defining aspects of any engineering economic decisions

engineering economic decision refers to all investment decisions relating to engineering projects.

engineering economic decision is the evaluation of costs and benef associated with making a capital investment.

The factors of and uncertainty are the defining aspects of any engineering economic decisions

Additional risk is not taken without an expected additional return of suitable magnitude

Money has a time value because it can earn more money over time (earning power).

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.

Initial amount of money in transactions involving debt or investments is called the principal (P).

engineering economic decision is the evaluation of costs and benef associated with making a capital .

Initial amount of money in transactions involving debt or investments is called

Marginal revenue must exceed marginal cost, in order to carry out a profitable increase of operations

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

At 8% interest, what is the equivalent worth of $2,042 after 5 years from now?

Money has a time value because its purchasing power changes over time (inflation).

Information System And Engineering MCQ's

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