1. In the blanks below, mark the following statements as either TRUE (T) or FALSE (F). 1. Capitalized cost refers to the present value of infinite service. 2. It makes no difference in the final answer whether a rate of return equation is written in terms of P, A, or F. 3. Public sector projects usually use lower interest rates than private sector projects.
1. In the blanks below, mark the following statements as either TRUE (T) or FALSE (F). 1. Capitalized cost refers to the present value of infinite service. 2. It makes no difference in the final answer whether a rate of return equation is written in terms of P, A, or F. 3. Public sector projects usually use lower interest rates than private sector projects.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![1. In the blanks below, mark the following statements as either TRUE (T) or FALSE (F).
1.
Capitalized cost refers to the present value of infinite service.
2. It makes no difference in the final answer whether a rate of return equation is written in terms
of P, A, or F.
3.
Public sector projects usually use lower interest rates than private sector projects.
4.
Rate of return is defined as the rate of interest paid on the principal of a loan or investment.
5.
PW comparison is only one life cycle of each alternative.
6.
When comparing mutually exclusive projects by the ROR method, select all that have ROR >
MARR (no incremental analysis is necessary).
7.
The primary purpose of public sector is to provide services and profits for the private sector.
B/C method used in public sector project evaluation
8.
9.
Engineers must maintain integrity and impartiality and always adhere to Code of Ethics.
Assets such lands are not depreciable.
10.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa86f310c-8b4d-45c8-9c3f-2d5332360de6%2Fe2376700-dd32-48c7-b399-fe47daf8ed5c%2Fvrni88_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. In the blanks below, mark the following statements as either TRUE (T) or FALSE (F).
1.
Capitalized cost refers to the present value of infinite service.
2. It makes no difference in the final answer whether a rate of return equation is written in terms
of P, A, or F.
3.
Public sector projects usually use lower interest rates than private sector projects.
4.
Rate of return is defined as the rate of interest paid on the principal of a loan or investment.
5.
PW comparison is only one life cycle of each alternative.
6.
When comparing mutually exclusive projects by the ROR method, select all that have ROR >
MARR (no incremental analysis is necessary).
7.
The primary purpose of public sector is to provide services and profits for the private sector.
B/C method used in public sector project evaluation
8.
9.
Engineers must maintain integrity and impartiality and always adhere to Code of Ethics.
Assets such lands are not depreciable.
10.
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