Econ 3

What is the first step in the engineering economic analysis procedure?

• Analysis and Comparison of Alternatives

• Problem Definition

• Selection of a Decision Criterion

• Development of Alternatives

Which principle is incorporated in the selection of a decision criterion?

• Principle 7

• Principle 5

• Principle 1

• Principle 3

What does a cash flow represent in engineering economy?

• The number of alternatives considered

• The economic effects of an alternative

• The total cost of a project

• The time taken for project completion

What is the main focus of Step 2 in the engineering economic analysis?

• Analysis of Cash Flows

• Performance Monitoring

• Development of Alternatives

• Selection of the Preferred Alternative

Which of the following is NOT a limitation when searching for superior alternatives?

• Lack of knowledge

• Excessive knowledge

• Preconceptions of what will work

• Lack of time and money

What is the purpose of performance monitoring in engineering economy?

• To select the best alternative

• To improve future analyses

• To develop investment alternatives

• To define the problem

In present economy studies, what is the time frame for comparing alternatives?

• More than one year

• One year or less

• Five years

• Indefinite time frame

What is the final step in the engineering economic analysis procedure?

• Performance Monitoring

• Analysis and Comparison of Alternatives

• Selection of the Preferred Alternative

• Development of Alternatives

Which principle emphasizes the consideration of future uncertainties?

• Principle 2

• Principle 1

• Principle 6

• Principle 4

What should be avoided when redefining a problem?

• Developing many redefinitions

• Concentrating on one problem

• Researching the true problem

• Making judgments