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Engineering Economy - Engineering

Q1:

Which one of the following statements is correct?

A The number of years required to recover the initial cash investment in a project, is called Pay Back period (PBP).

B The discount rate that equates the present value of the expected Net Cash Flows (CFs) with the Initial Cash Outflow (ICO) is known as internal rate of return.

C The present value of the proposal's net cash flows, less the proposal's initial cash outflow is known as the Net Present Value (NPV)

D All of these

ANS:D - All of these

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