Explore topic-wise MCQs in Computer Science Engineering (CSE).

This section includes 728 Mcqs, each offering curated multiple-choice questions to sharpen your Computer Science Engineering (CSE) knowledge and support exam preparation. Choose a topic below to get started.

601.

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 capitalized cost of the facility.

A. 3579806
B. 3877482
C. 4301205
D. 3360343
Answer» C. 4301205
Discussion
602.

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
Answer» C. the net future of the project at 10% interest is $2,000
Discussion
603.

Reconsider the project balance table calculated at 10% given in 5.9.:Which of the following statements is correct?

A. the cash flow in period 3 is $240
B. the project is not profitable at i ⇓ = ⇓ 10%.
C. the conventional payback period is 1.7 years
D. the net present worth of the project is $2,000
Answer» B. the project is not profitable at i ⇓ = ⇓ 10%.
Discussion
604.

Find the capitalized equivalent worth for the project cash flow series at an interest rate of 10%.

A. ce(10%) ⇓ = ⇓ $1,753
B. ce(10%) ⇓ = ⇓ $1,548
C. ce(10%) ⇓ = ⇓ $1,500
D. ce(10%) ⇓ = ⇓ $1,476
Answer» C. ce(10%) ⇓ = ⇓ $1,500
Discussion
605.

You are considering buying an old house that you will convert into an office building for rental. Assuming that you will own the property for 10 years, how much would you be willing to pay for the old house now given the following financial data?

A. 250100
B. 232316
C. 201205
D. 218420
Answer» E.
Discussion
606.

An investment project costs P. It is expected to have an annual net cash flow of 0.125P for 20 years. What is the project’s payback period?

A. 6 years
B. 0 year
C. 11 year
D. 8 year
Answer» E.
Discussion
607.

Your R&D group has developed and tested a computer software package that assists engineers to control the proper chemical mix for the various process manufacturing industries. If you decide to market the software, your first year operating net cash flow is estimated to be $1,000,000. Because of market competition, product life will be about 4 years, and the product’s market share will decrease by 25% each year over the previous year’s share. You are approached by a big software house which wants to purchase the right to manufacture and distribute the product. Assuming that your interest rate is 15%, for what minimum price would you be willing to sell the software?

A. 2887776
B. 2766344
C. 2047734
D. 2507621
Answer» D. 2507621
Discussion
608.

A couple wants to save for their daughter’s college expense. The daughter will enter college 8 years from now and she will need $40,000, $41,000, $42,000 and $43,000 in actual dollars for 4 school years. Assume that these college payments will be made at the beginning of the school year. The future general inflation rate is estimated to be 6% per year and the annual inflation-free interest rate is 5%. What is the equal amount, in actual dollars, the couple must save each year until their daughter goes to college (for 8 years)?

A. 11945
B. 11838
C. 12538
D. 12142
Answer» C. 12538
Discussion
609.

Find the net present worth of the following cash flow series at an interest rate of 10%

A. $550 < pw(10%) ≤ $600
B. $600 < pw(10%) ≤ $650
C. $500 < pw(10%) ≤ $550
D. $650 < pw(10%) ≤ $700
Answer» C. $500 < pw(10%) ≤ $550
Discussion
610.

You are considering purchasing a $1,000 bond with a coupon rate of 9.5%, interest payable annually. If the current inflation rate is 4% per year, which will continue in the foreseeable future, what would be the real rate of return if you sold the bond at $1,080 after 2 years?

A. about 9.5%
B. about 13.26%
C. about 9.26%
D. about 8.9%
Answer» E.
Discussion
611.

The average starting salary for engineers for 2008 is $53,000. What is the equivalent salary in terms of purchasing power of 2000? Assume that the general inflation rate over the last 8 years is known to be 4%.

A. 34980
B. 38727
C. 72534
D. 40276
Answer» D. 40276
Discussion
612.

You are purchasing an automobile priced at $20,000 by borrowing at 12% interest compounded monthly. The loan will be repaid in monthly installments for five years. What is the constant dollar value (value at the time of financing) of the 36th payment of this loan, if the general inflation rate is 5% compounded monthly?

A. 361.91
B. 383.66
C. 444.89
D. 396.02
Answer» C. 444.89
Discussion
613.

The CPI for 2000 was 171.2 and the projected CPI for 2008 is 220. What is the general inflation rate over the last 8 years?

A. 3.65%
B. 6.1%
C. 3.18%
D. 2.83%
Answer» D. 2.83%
Discussion
614.

If you experience a 6 % annual inflation, how long does it take to see the purchasing power being reduced in half?

A. 13 years
B. 10 years
C. 12 years
D. 11years
Answer» D. 11years
Discussion
615.

If the inflation rate is 6% per year and the market interest rate is known to be 15% per year. What is the implied real interest rate in this inflationary economy?

A. 11.45%
B. 9.00%
C. 8.00%
D. 8.49%
Answer» E.
Discussion
616.

Constant (real) dollars reflect constant purchasing power independent of the passage of time

A. true
B. false
Answer» B. false
Discussion
617.

  dollars is the dollar value that is “influenced” by inflation.

A. actual
B. constant
Answer» B. constant
Discussion
618.

The current gasoline price is $4.15, and it is projected to increase next year by 5%, and 8% the following year, and -3% the third year. What is the average inflation rate for the projected gasoline price for the next 3 years?

A. 3.23%
B. 3.33%
C. 5.33%
D. 3.00%
Answer» B. 3.33%
Discussion
619.

Actual (current) dollars (An)is the dollar value that is “influenced” by .

A. deflation
B. inflation
Answer» C.
Discussion
620.

CPI does not take into the account the price of raw material, finished product and operating cost

A. true
B. false
Answer» B. false
Discussion
621.

Consumer Price Index (CPI) Measures prices of typical purchases made by consumers, based on a typical market basket of goods and services required by average consumers

A. true
B. false
Answer» B. false
Discussion
622.

PPI measures average change over a time in selling prices by domestic producers of goods and services.

A. true
B. false
Answer» B. false
Discussion
623.

Actual (current) dollars (An)is the dollar value that is “influenced” by inflation.

A. true
B. false
Answer» B. false
Discussion
624.

  rate is defined as the rate at which the cost general level of goods and services increases resulting in decreases of purchasing

A. deflation
B. inflation
Answer» C.
Discussion
625.

In AE analysis revenues must cover two kinds of costs:– Operating costs and Capital recovery costs

A. true
B. false
Answer» B. false
Discussion
626.

Consider a machine that costs $20,000 and has a five-year useful life.At the end of the five years, it can be sold for $4,000 after all tax adjustments have been factored in. If the firm could earn an after-tax revenue of $4,400 per year with this machine, should it be purchased at an interest rate of 10%? (All benefits and costs associated with the machine are accounted for in these figures.)

A. -220.76
B. -200
C. -240
Answer» B. -200
Discussion
627.

Operating costs are incurred by the operation of physical plants or equipment needed to provide service

A. true
B. false
Answer» B. false
Discussion
628.

The same dollar amount buys less of an item over time is

A. inflation
B. deflation
Answer» B. deflation
Discussion
629.

  is a loss in the purchasing power of money over time.

A. inflation
B. deflation
Answer» B. deflation
Discussion
630.

When only costs are involved, the AE method is sometimes called the annual equivalent cost method.

A. true
B. false
Answer» B. false
Discussion
631.

The annual equivalent worth (AE) criterion provides a basis for measuring investment worth by determining equal payments on an annual basis.

A. true
B. false
Answer» B. false
Discussion
632.

Nominal Interest Rate is Interest rate quoted based on an annual period

A. true
B. false
Answer» B. false
Discussion
633.

Suppose that you invest $1 for 1 year at 18% compounded monthly. How much interest would you earn?

A. 19.56 % compounded annu
B. 18.56 % compounded a
C. 20.56 % compounded annually
Answer» B. 18.56 % compounded a
Discussion
634.

A fund created by making periodic deposits (usually equal) at compound interest in order to accumulate a given sum at a given future time for some specific purpose is sinking fund

A. true
B. false
Answer» B. false
Discussion
635.

A fund accumulated by periodic deposits and reserved exclusively for a specific purpose, such as retirement of a debt

A. sinking fund
B. principal
C. interest
Answer» B. principal
Discussion
636.

If you deposit P dollars today for N periods at i, you will have F dollars at the end of period N.

A. true
B. false
Answer» B. false
Discussion
637.

Economic equivalence refers to the fact that a cash flow-whether a single payment or a series of payments-can be converted to an equivalent cash flow at any point in time.

A. true
B. false
Answer» B. false
Discussion
638.

Given P = $1,000 , i = 8% and N = 3 years calculate future value using Compound interest

A. 1200
B. 1259.71
Answer» C.
Discussion
639.

Interest is the cost of moneyas a cost to the borrower and an earning to the lender

A. true
B. false
Answer» B. false
Discussion
640.

Cash Flow is the movement of money (in or out) of a project

A. true
B. false
Answer» B. false
Discussion
641.

If you had $2,000 now and invested it at 10%, how much would it be worth in 8 years?

A. 4200
B. 4287
C. 5000
Answer» C. 5000
Discussion
642.

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

A. true
B. false
Answer» B. false
Discussion
643.

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

A. -5000
B. -4000
C. -2000
D. -3000
Answer» E.
Discussion
644.

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

A. true
B. false
Answer» B. false
Discussion
645.

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

A. true
B. false
Answer» B. false
Discussion
646.

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

A. interest
B. principal
Answer» C.
Discussion
647.

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

A. true
B. false
Answer» B. false
Discussion
648.

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

A. expenditure
B. investment.
Answer» C.
Discussion
649.

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.

A. true
B. false
Answer» B. false
Discussion
650.

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

A. true
B. false
Answer» B. false
Discussion