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Engineering Economy, 5/e

Leland Blank, Texas A&M University
Anthony Tarquin, University of Texas - El Paso

Selection From Independent Projects Under Budget Limitation

Matching Quiz

Select the correct answers on the left to fill in the blanks on the right. There are more answers than questions, therefore, some of the items on the right will remain unused. When you have completed the quiz, click the SUBMIT button at the bottom.


1				The capital budgeting method allows ___________ project(s) to be selected.


2				For independent project analysis, the assumed reinvestment rate on positive net cash flows is at the MARR from the time realized until the __________


3				The total possible number of mutually exclusive bundles from m independent projects is _______________.


3				The linear programming solution of a capital budgeting problem requires that each decision variable have a value of ______________.


4				The capital budget limitation in a capital budgeting problem is applied to the initial investment of _____________.

Answer choices for questions 1 through 4

A)	2^m
B)	2^m -1
C)	2^(m-1)
D)	x = 1
E)	x is between 0 and 1
F)	More than one
G)	LCM of all projects
H)	Each project independently
I)	Only one
J)	x = 0 or 1
K)	End of longest-lived project
L)	Each mutually exclusive bundle

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