Benefit-Cost Ratio and Payback Period — Engineering Board Exam Practice Questions

6 free engineering board exam reviewer questions on Benefit-Cost Ratio and Payback Period (Engineering Economics), each with the correct answer and a worked solution.

1. A highway costs P20 million, requires P0.5 million per year for maintenance, and lasts 20 years. At 8% interest, what minimum uniform…
2. An investment of P500,000 returns P100,000, P150,000, P200,000, and P250,000 at the end of years 1 to 4. Find the payback period (ignoring…
3. An investment of P100,000 returns P30,000 at the end of each year. At 10% interest, what is the discounted payback period?
4. A project has an initial cost of P5,000,000, annual maintenance of P200,000, and annual benefits of P900,000 for 10 years. Find the…
5. Alternative 1 costs P1.0 million with a present worth of benefits of P1.4 million. Alternative 2 costs P1.5 million with a present worth…
6. A project costs P800,000 and produces net savings of P120,000 per year. Find the simple payback period.