Renewable Energy Engineering (2181910) MCQs

MCQs of Economic Analysis

Showing 1 to 10 out of 35 Questions
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1.
The amount grows fastest with
(a) yearly compounding
(b) monthly compounding
(c) daily compounding
(d) continuous compounding
Answer:

Option (d)

2.
Converting future value to present value is called
(a) compounding
(b) discounting
(c) annuity
(d) deflation
Answer:

Option (b)

3.
In uniform gradient series
(a) first payment start from year 1 and grading start form year 2
(b) first payment start from year 2 and grading start form year 1
(c) first payment start from year 0 and grading start form year 1
(d) first payment start from year 1 and grading start form year 1
Answer:

Option (a)

4.
Depreciation of an asset is the
(a) decrease in value due to inflation
(b) decrease in value due to physical deterioration with time
(c) decrease in value due to less demand
(d) decreased maintenance requirement
Answer:

Option (b)

5.
At the end of the lifetime of the project, the book value becomes
(a) equal to initial cost
(b) half of the initial cost
(c) equal to salvage value
(d) equal to zero
Answer:

Option (c)

6.
The time needed for cumulative savings on fuel or electricity or income from power fed to the grid to become equal to the total investment on the renewable energy system is called
(a) payback period
(b) life cycle period
(c) annual
(d) none of the above
Answer:

Option (a)

7.
Annual saving is equal to
(a) saving on fuels or electricity - repayment of loan taken + maintenance charges - local taxes + takes deduction
(b) saving on fuels or electricity + repayment of loan taken - maintenance charges - local taxes + takes deduction
(c) saving on fuels or electricity + repayment of loan taken - maintenance charges - local taxes - takes deduction
(d) saving on fuels or electricity - repayment of loan taken - maintenance charges - local taxes + takes deduction
Answer:

Option (d)

8.
Life cycle saving is equal to
(a) cumulative renewable energy saving calculated over a lifetime of the system + the resale value of the system at the end of its lifetime
(b) cumulative renewable energy saving calculated over a lifetime of the system – the resale value of the system at the end of its lifetime
(c) the resale value of the system at the end of its lifetime – cumulative renewable energy saving calculated over a lifetime of the system
(d) the resale value of the system at the end of its lifetime + cumulative renewable energy saving calculated over a lifetime of the system
Answer:

Option (a)

9.
Cumulative saving is equal to
(a) annual saving over a period of time + cost of an equivalent conventional system + initial down payment at the time of the renewable energy system
(b) annual saving over a period of time + cost of an equivalent conventional system – initial down payment at the time of the renewable energy system
(c) annual saving over a period of time – cost of an equivalent conventional system – initial down payment at the time of the renewable energy system
(d) annual saving over a period of time – cost of an equivalent conventional system + initial down payment at the time of the renewable energy system
Answer:

Option (b)

10.
The minimum rate of return that an investor expects to earn on his/her investment is known as
(a) principal amount
(b) interest
(c) cost of capital
(d) cash flow
Answer:

Option (c)

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