Question

1.Project finance is considered as a long-term investment with a commitment of large amounts of resources. Determining project costs involves taking the information gained from assessing needed resources and

A. asking the client for at least twice as much funding. B. using it for scheduling purposes. C. adjusting the project purpose as necessary. D. translating it into a realistic budget.

2.An investor, Mr. Trix wants to finance RM 500,000 in your new investment to expand your project overseas. Since you do not plan to proceed for at least another year due to Covid-19 pandemic, Mr. Trix told you that you can have the money now, or he can wait and give you the money when you actually invest in your overseas project. You decide to take the money now and deposit it in your company’s fixed deposit account. After all, your deposit will yield 6% interest compound annually. A year from now, post-Covid-19, your RM 500,00 will be worth RM 530,000. What financial concept does this scenario presents?

A. Capital budgeting B. Dividend reinvestment plan C. Time-value of money D. Business plan In valuing a project for decision making,

3.which of the following is an activity conducted by the finance function of a project?

A. Tracking business expenditures B. Preparing cash flow statements C. Projecting product sales D. Choosing appropriate investments

4.Cost reduction is one of important considerations in project finance. Any sound project will normally either increase revenues or reduce costs because it has a positive effect on the project's

A. assets value. B. interest rate. C. cash flows. D. debt structures.

5.Engineering projects involve long-term investment with various parties who have to co-operate in order to achieve goals that may be 20 or 30 years away. However, there are some decisions to make investments and hold them for less than one year is to

A. control inflation rates. B. monitor long-term wealth. C. reduce tax obligations. D. reduce risks.

6.Although net income is a finance concept that ignores the timing of cash flows into and out of a project, the net income figure is useful for many things. What types of financial data are analysed to determine a project’s net income?

A. Depreciation, tax and discount rates B. Salvage value and working capital C. Revenue, expenses and tax rates D. Tax, interest and inflation rate

Which of the following is NOT a true statement about engineers’ skill as “problem solvers who apply their knowledge and experience to building projects that meet human needs”: * A. It analyses of costs versus benefits. B. It generates scientific discoveries. C. It evaluates environmental impacts versus benefits. D. It uses empirical experience for profit maximization.

7.In a project that involves a massive use of assets, evaluation on these assets is important. In evaluating the entire lifetime of an asset, Whole Life Cost analysis considers the following EXCEPT:

A. capital and maintenance costs B. operational and energy costs C. material and processing costs D. replacement and disposal costs

Embracing Industry 4.0 technologies and processes is important to meet other competitors. This competitiveness depends on the ability to transform by responding to market shifts and technology trends through various project investments. The most significant barriers that many companies face when investing in these technologies are the perception of:

A. business risk and lack of adequate technology solutions. B. high cost and overabundance of adequate technology solutions. C. high cost and overdependence on a single government platform. D. high cost and lack of evidence of return on investment.

8.The major engineering challenge which is directly related to the subject of investment and project finance is related to:

A. Innovative and attractive products B. Competitive and economical products C. Futuristic and competitive products D Risky and innovative products

Answer 1

1. D. Translating it into a realistic budget.

2. C. Time value of money

3. D. Choosing appropriate investments.

4. C. Cash flows

5. C. Reduce tax obligations

6. C . Revenue, expenses and tax rates

Question with no number - D. Using empirical experience for profit maximization

7. C. Material and processing costs

Question with no number A. Business risk and lack of adequate technology solutions

8. D. Risky and innovative product s ( as they would require high amount of investment)