1.

All of the following types of cost are relevant to making a financial decision except:

1. Opportunity costs

2. Direct costs

3. Sunk costs

4. Unavoidable costs

2.

An order of magnitude estimate should give the manager cost data accurate to within:

1. ?25 to +25 percent of actual costs

2. ?30 to +85 percent of actual costs

3. ?10 to +25 percent of actual costs

4. None of the above

3.

Your boss has asked you for a preliminary (analogous) cost estimate for a project. Your estimate is $200,000. Which estimate are you likely to give him?

1. $150,000 to $350,000

2. $180,000 to $250,000

3. $190,000 to $220,000

4. $170,000 to $300,000

4.

Keeping in mind that present value = M/(1+r) ^t, and using the above table, what is the net present value of an annual income flow of $1,600 at 14% over the next 3 years?

1. $3,713.60

2. $ 0.68

3. $1,080.00

4. $ 476.19

5.

Based on the above table, what is the present value of $1,000 at 12% at the end of 5 years?

1. $3,605.00

2. $ 0.57

3. $ 567.00

4. $ 892.86

6.

Life cycle costing:

1. Is the concept of including all costs over the life of the product of the project

2. Is an activity...