Engineering Economics
If ‘a’ is the base amount expenditure, ‘b’ is the increase in the operation cost each year over a period of’ 'n’ years, the total cost of maintenance is:

a + (n + 1) b
a + (n - 1) b
a × (n - 1) b
a - (n - 1) b

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Engineering Economics
Which is NOT an essential element of an ordinary annuity?

The first payment is made at the beginning of the first period.
Compound interest is paid on all amounts in the annuity.
The payments are made at equal interval of time.
The amounts of all payments are equal.

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Engineering Economics
A construction estimate is used

To decide an approximation of the value of the project and not the exact cost
To judge tentatively or approximate value of the project
To produce a statement of the approximate cost
None of these

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