In a cash-flow diagram :

Time 0 is considered to be the present

Time 1 is considered to be the end of time period 1

A vertical arrow pointing up indicates a positive cash flow

All of the above

Correct Answer : All of the above

Explanation :

* Time 0 is considered to be the present

* Time 1 is considered to be the end of time period 1

* A vertical arrow pointing up indicates a positive cash flow

* An arrow pointing downward indicates a negative cash flow

Recently Updated in Engineering Economy Questions

A P 1,000,000 issue of 3%, 15-year bond was sold at 95%. What is the rate of interest of this investment?

3.7%

4.0%

3.0%

3.4%

Correct Answer : Option (C) : 3.0%

Under the depletion allowance method in computing depreciation, the depletion charge is equal to either ______ whichever is smaller.

Fixed percentage of gross income or the net taxable income

Fixed percentage of gross income or 50% of the net taxable income

50% of the fixed percentage of gross income or the net taxable income

50% of the fixed percentage of gross income or 50% of the net taxable income

Correct Answer : Option (B) : Fixed percentage of gross income or 50% of the net taxable income

What is defines as the analysis and evaluation of the monetary consequences by using the theories and principles of economics to engineering applications, designs and projects?

Engineering economy

Design cost analysis

Engineering cost analysis

Economic Analysis

Correct Answer : Option (D) : Economic Analysis

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