1. The following are examples of benefits except:
a. Additional revenue to local motels because of extended national park road.
b. School overcrowding because of a military base expansion.
c. Less tire wear because of smoother road.
d. $400,000 annual income to local businesses because tourism created by new national park.
2. To convert inflated dollars into constant-value dollars, it is necessary to take inflated dollars and:
a. Divide by (1 + if)n
b. Divide by (1 + f )n
c. Divide by (1 + i)n
d. Multiply by (1 + f)n
3- Which is NOT true about Public Sector projects?
a. The citizens own the project
b. The size of the investment is generally large
c. Life estimates are generally long (30-50+ years)
d. Profit is estimated and applied on all public sector projects
4-Reasons to replace equipment are:
a. Wear and tear, decreasing reliability
b. Obsolete, not state-of-the-art
c. Not precise enough as per new design specs
d. All of the above
5- Examples of Variable Cost are:
a. Insurance
b. Buildings
c. Direct labor
d. Equipment capital recovery
6- Salvage value is always included in the B/C calculation as:
a. Factor added to the numerator
b. Factor added to the disbenefis
c. Factor subtracted from the denominator
d. Factor added to the denominator