True about public sector projects-examples of benefits

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Reference no: EM131113525

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

Reference no: EM131113525

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