Engineering Economy Quiz
Test your knowledge of key engineering economy concepts. Please answer all questions.
Full Name
*
First Name
Last Name
Email Address
*
example@example.com
1. What is the primary goal of engineering economy studies?
*
To maximize technical performance
To minimize costs only
To support decision-making by evaluating economic merits of alternatives
To improve safety standards
2. What is the formula for calculating simple interest?
*
Principal × Rate × Time
Principal × (1 + Rate)^Time
Principal ÷ Rate × Time
Rate × Time ÷ Principal
3. Calculate the future worth (F) of $1,000 after 3 years at an annual interest rate of 5%.
*
4. Which of the following is NOT a method of depreciation?
*
Straight-line
Sum-of-the-years-digits
Double declining balance
Compound interest
5. What does Net Present Value (NPV) help determine?
*
The value of an investment at the end of its life
The profitability of an investment by discounting future cash flows
The rate of depreciation
The interest rate required for a loan
6. A project requires an initial investment of $5,000 and returns $1,500 per year for 5 years. What is the payback period?
*
7. Which factor is used to convert a future amount to a present amount?
*
Future Worth Factor
Present Worth Factor
Sinking Fund Factor
Capital Recovery Factor
8. Rate your confidence in solving engineering economy problems.
*
1
2
3
4
5
9. Select all topics you find challenging in engineering economy.
Interest calculations
Depreciation methods
Break-even analysis
Economic decision making
Other
10. Briefly explain your strategy for comparing project alternatives.
Submit Quiz
Should be Empty: