Top 350+ Solved Information systems and engineering economics MCQ Questions Answer
Q. Suppose that you invest $1 for 1 year at 18% compounded monthly.How much interest would you earn?
a. 19.56 % compounded annu
b. 18% compounded mon
c. 1.5% per month for 12
d. all true
Q. The following table contains a summary of how a project’s balance is expected to change over its 5 year service life at 10% interest.:Which of the following statements is incorrect?
a. the net present worth of the project at 10% interest is $1,242
b. the required additional investment at the end of period 1 is $500
c. the net future of the project at 10% interest is $2,000
d. within 2 years, the company will recover all its investments and the cost of funds (interest)from the project
Q. A newly constructed water treatment facility cost $2 million. It is estimated that the facility will need renovating every 30 years at a cost of $1 million. Annual repairs and maintenance are estimated to be$100,000 per year. At an interest rate of 6%, determine the capitalizedcost of the facility.
a. 3579806
b. 3877482
c. 4301205
d. 3360343