7 ----defines at successive levels of details, in term of work elements of a project. Cash flow a. Work Breakdown structure (WBS) b. Resource categories C. d. Cost structure Order of magnitude estimates are used in the planning and initial evaluation stage of a project to select feasible alternatives. They have accuracy in the range of -- 8. e....... #05 to 15% a. b. 20 to 30% 30 to 50% c. d. 10 to 20 % 9. An is a dimensionless number that indicates how a cost has changod with time with respect to a base year a. Index b. Unit c. Semi-detailed Estimate Onder of magnitude Estimate d. 10. The term is used because the procedure requires estimates of cost clements at the lower levels of the cost structure which are then added together to obtain the total cost of the product. a. Bottom-up b. Top-down -- is initiated by conducting market surveys to determine the selling price of the best competitor's product. This is obtained by deducting the desired profit from the best competitor's selling price 11 a. Value Engineering b. Target Costing 12. Depreciation is defined as the--in value of physical properties with the passage of time and use. a. Increase b. Decrease c. Salvage 13. The simple payback period, 0, of a certain project is 4 years would be less than 4 years The discounted payback period, a. b. The discounted payback period, , would be 4 years. The discounted payback period, , would be mose than 4 years. e. d. The discounted payback period, 0,would be 4 years or more. 14. In evaluating an altemative which has benefits, disbencfits and costs, the coaventional B/C ratio is written as a (Benefits+Disbenefit) Costs b. (Benefits-Risbsasfit Costs s. Benefits Costs-Disbenefits) d. None of the above 15. The statement that shows cash in- flow and cash out- flow in a company is the Balance sheet statement a. b. Cash flow statement Profit and loss statement c. d. All of the above 16. Given the following projects A, B, C and D. Which one should you select? Project A has no discounted payback period a. b. Project B has Benefit-Cost Ratio of 0.75 Project C has IRR of -2% C. Project D has AW of $ 10,000 d. 17. The IRR of a given project is 15%. At interest rate of 18% , the net present worth of this project is expected to have a. A positive value A negative value b. c. Zero d. None of the above