Engineering Economy (9th Ed.) - Comprehensive Final Exam 350 Q

ENGINEERING ECONOMY (9th Ed.) - COMPREHENSIVE FINAL EXAM 350 QUESTIONS WITH ANSWERS AND RATIONALESQuestion 1 Which of the following represents the primary financial units used for determining the economically best alternative? --ANSWER>>>: Monetary units (dollars, pesos, euros, etc.) Rationale: Engineering economy expresses alternatives in monetary terms to provide a common basis for comparison. While non-monetary factors matter, the financial analysis uses monetary units to quantify costs and benefits. Question 2 Which of the following are considered intangible factors in engineering economy decisions? --ANSWER>>>: Morale, goodwill, dependability, acceptance, friendship, convenience, aesthetics Rationale: Intangible factors cannot be easily quantified in monetary terms but may significantly influence the final decision. They represent non-economic considerations that must be weighed alongside financial analysis. Question 3 What is a "measure of worth" in engineering economy? --ANSWER>>>: A criterion used to select the economically best alternative Rationale: Common measures of worth include present worth, rate of return, payback period, and benefit/cost ratio. These provide quantitative bases for comparing alternatives. Question 4 Classify each of the following as tangible or intangible: sustainability, installation cost, transportation cost, simplicity, taxes, resale value, morale, rate of return, dependability, inflation, acceptance by others, ethics. --ANSWER>>>: Sustainability: Intangible Installation cost: Tangible Transportation cost: