Economic Analysis of Energy Projects — MCQs – EE

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1. The primary purpose of economic analysis in energy projects is to:



2. The term capital cost refers to:



3. The operating cost of an energy project includes:



4. Payback period is defined as the time required to:



5. The shorter the payback period, the project is considered:



6. Net Present Value (NPV) is a measure of:



7. A positive NPV indicates that the project is:



8. The discount rate in project evaluation represents:



9. Internal Rate of Return (IRR) is the rate at which:



10. A project is acceptable if its IRR is:



11. Life Cycle Cost (LCC) analysis evaluates:



12. Simple Payback Method does not consider:



13. Benefit-Cost Ratio (BCR) is the ratio of:



14. A BCR greater than 1 implies the project is:



15. Depreciation in energy projects refers to:



16. The salvage value of an asset is:



17. The levelized cost of energy (LCOE) represents:



18. Sensitivity analysis is performed to:



19. Economic life of a project is the period:



20. Cash flow analysis involves:



21. Inflation rate affects energy project economics by:



22. Break-even analysis determines:



23. Replacement analysis is carried out when:



24. Tax incentives in energy projects are offered to:



25. Escalation rate refers to:



26. Discounted Cash Flow (DCF) technique is preferred because it:



27. Sunk cost in project economics is:



28. Economic risk analysis helps in:



29. In renewable energy projects, feed-in tariffs are:



30. The main objective of economic optimization in energy projects is to:



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