1. The following are examples of benefits except: a. Additional revenue to local

Question

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

Explanation / Answer

1.less tire wear because of smoother road

2.multiply (1+f)n

3.citizens own the project.

4.all of the above

5.direct labor

6.Factor subtracted from the denominator

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