The Risky Project Worth $52,000, Not $35,000
The outcomes were not equally likely. Probability-weighting gives an expected value of $52,000, not the simple average of $35,000.
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FE Other Disciplines · Engineering Economics
FE Engineering Economics Practice Questions
Solve FE-style Engineering Economics questions and learn the reasoning behind each answer through interactive engineering cases.
Interactive problems•Reasoning explained•Solutions included
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PRACTICE SET
FE Engineering Economics Practice Questions
Choose a question and solve it before reading the final engineering verdict.
QUESTION01
The Risky Project Worth $52,000, Not $35,000
The outcomes were not equally likely. Probability-weighting gives an expected value of $52,000, not the simple average of $35,000.
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QUESTION02
The Process Choice That Broke Even at 10,000 Units, Not 5,000
The fixed-cost difference was correct, but break-even depends on the difference in variable costs. The correct crossover is 10,000 units.
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QUESTION03
The Upgrade Worth $3,675, Not $25,000
Undiscounted cash flows suggested a $25,000 gain; discounted NPV is about $3,675.
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What should I practice in FE Engineering Economics?
Practice the calculations, assumptions, constraints, and failure modes that appear around this topic. Each question here is designed to test whether you can apply the concept when the obvious calculation is not the whole engineering decision.