(A)
A NPV profile graph shows the curvilinear relationship between the net present value of the project and discount rate employed
(B)
In a NPV profile, if discount rate is zero, then net present value is simply total cash inflows less the total cash outflows of the project
(C)
As the discount rate increases, the net present value profile slopes downward to the right
(D)
All of these
(E)
An annuity is a series of equal payments occurring at equal period of time
(F)
Annuity is called an equal payment or uniform payment series
(G)
An annuity may have periods of time of any length but should always be of equal length
(H)
All the above
(I)
Engineering economy is a collection of mathematical techniques which simplify economic comparisons
(J)
Engineering economy is a decision assistance tool by which one method will be chosen as the most economically one
(K)
For understanding the engineering economy, one should be able to classify the basic terminology and fundamental concepts of economy
(L)
All of these
(M)
The ratios which show profitability in relation to sales and those which show profitability in relation to investment are called profitability ratios
(N)
The ratio of gross profit and net sales is called profitability in relation to sales ratio
(O)
The ratio of net profit after taxes to total assets is known as profitability in relation to investment ratio
(P)
All of these
(Q)
The receipts and disbursements in a given time interval are referred to as cash flow
(R)
The assumptions that all cash flows occur at the end of the interest period, is known as the end of period convention
(S)
The cash flow diagram represents the statement of the problem and also includes what is given and what is to be found
(T)
All of the above
(U)
Over head rate = $$frac{{{ ext{total over head in rupees for period}}}}{{{ ext{direct labour in rupees for period}}}}$$
(V)
Over head cost per unit = Overhead ratio × direct labour cost/unit
(W)
Both (A) and (B)
(X)
Neither (A) nor (B)
(Y)
Ratio analysis is the procedure of determining and interpreting numerical relationship of various items of the financial statement
(Z)
All financial ratios are obtained by relating two sets of information contained in a Single financial statement
([)
The relationship between two accounting figures expressed mathematically, is known as a financial ratio
(\)
All of these
(])
The ability of a company to meet obligations which are likely to mature in short term, is called liquidity
(^)
The liquidity ratio may be defined as a relationship of current liabilities and current assets and advances
(_)
The liquidity ratios are used to indicate the financial position of the firm
(`)
All of these
(a)
The capital required to get a project started is the first cost
(b)
The first cost is a single cash flow or a series of cash flows that are made in the beginning of the activity's life span
(c)
The first cost of purchasing a car is the sum of the down payment, taxes and dealers charges
(d)
All of these
(e)
The capital required to get a project started, is called first cost
(f)
The costs associated with a new or existing project that remain unaffected by the changes in activity level over the normal range of operation of the project, are called fixed costs
(g)
The group of costs that vary proportionately to the changes in the activity level of a new or existing project are called variable costs
(h)
All of these
(i)
The change in the amount of money over a given time period is called 'time value' of money, a most important concept in engineering economy
(j)
The manifestation of the time value of money is termed as interest
(k)
Interest on borrowing = present amount owed - original loan
(l)
All of these
(m)
The difference between sales revenue and cost of goods sold, is known as 'Gross Profit'
(n)
The gross profit percentage is the average profit margin obtained on goods sold
(o)
The relationship of contribution to sales is known as contribution ratio
(p)
All of these
(q)
The financial ratio summarizes some aspect of the firm's financial condition at the time of preparing a balance sheet
(r)
Both the numerator and denominator of financial ratios come directly from the balance sheet
(s)
Income statement ratios compare a flow item from the income statement to another flow item form the income statement
(t)
All of these
(u)
The ratio of current assets, loans and advances, and the current liquidity is called current ratio
(v)
Larger the current ratio, larger is the margin of safety
(w)
The operating profit is the difference between gross profit and operating expenses
(x)
All of these