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APSC 221 Question and answers already passed 2024/2025

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APSC 221 Question and answers already passed 2024/2025 APSC 221 Sunk costs should be included in an engineering economic analysis - correct answer False Decisional equivalence is a consequence of the ________ on the part of a decision maker among available choices. a. indifference ...

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APSC 221
Sunk costs should be included in an engineering economic analysis - correct
answer ✔False


Decisional equivalence is a consequence of the ________ on the part of a
decision maker among available choices.




a. indifference




b. market analysis




c. study of general economic activity levels within an industry




d. understanding - correct answer ✔a. indifference


T/F: Efficiency means achieving the organizational goals that have been set -
correct answer ✔False


T/F: The payback period method will always give results consistent with rate
of return or present/annual worth methods - correct answer ✔False

,_______ are used in preliminary or conceptual design stage of a project -
correct answer ✔Semi-detailed or budget estimates


Market equivalence is a consequence of the ability to _________ one cash
flow for another at zero cost - correct answer ✔exchange


T/F: A comparison of rate of return and present/annual worth of methods
leads to the conclusion that the two sets of methods when properly used give
opposing decisions - correct answer ✔False


In determining relevant risk and formulating proactive strategies for their
mitigation, the project team can pay a little in terms of extra time and cost
initially, or it must be prepared to.... - correct answer ✔pay potential
exorbitant amounts of time and money in the future


T/F: In the replacement case where the defender and challenger are identical,
it is not necessary to assume that the two options are technologically identical
- correct answer ✔False


Any number of risks of a relatively minor nature may be present in a project as
a matter of course. However, because the likelihood of their occurrence is so
small or the consequences of their impact are so minor, they may be judged
____ and ignored - correct answer ✔acceptable


T/F: The payback period is the number of years it takes for an investment to
be recouped when the interest rate is assumed to be zero - correct answer
✔True


An asset starts to lose value as soon as it's purchased - correct answer
✔True

,The cost of capital for large companies is an average of the costs of borrowing
and of selling shares, which is referred to as the ________ average cost of
capital - correct answer ✔weighted


Many project organizations create relationships with suppliers and customers
that include ____________requirements for risk to be shared among those
involved in the project - correct answer ✔legal


Which of the following is NOT one of the risk management steps? - correct
answer ✔Planning and scheduling


Management is the process of ____________.
a. Planning


b. Organizing


c. Leading


d. Controlling


e. All of the above - correct answer ✔e. All of the above


T/F: An index is a dimensionless number that indicates how a cost or price
has changed with time with respect to a base year - correct answer ✔True


T/F: The expected value associated with the node farthest to the left in a
decision tree is the expected value of the overall decision - correct answer
✔True

, T/F: The following are all typical management job titles: plant manager,
operations manager, and office manager - correct answer ✔False


One reason why perfect monopolies rarely occur in practice is because -
correct answer ✔Few products are so unique that substitutes cannot be
used


T/F: The inflation rate is the rate of increase in average prices of goods and
services over a specified time period, usually a year - correct answer ✔True


T/F: Controlling involves the interactions between managers and their
subordinates as they both work to meet the firm's objective - correct answer
✔False


If the lives of alternatives are not the same, one can transform them to equal
lives using: - correct answer ✔Repeated lives


If a firm establishes a back-up plan, they are engaging in __________ -
correct answer ✔Contingency plan


___________ are costs that are difficult to attribute or allocate to a specific
output or work activity - correct answer ✔Indirect costs


T/F: On a cash flow diagram, the vertical arrows pointing upwards represent a
negative cash flow - correct answer ✔False


T/F: The salvage value of an asset can be estimated using a depreciation
model - correct answer ✔True

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