is that the project manager has a budget of one million dollars for this project. ( III.Sunk costs must be ignored in engineering economic decision making as sunk costs are money already spent and do not have any consequence on decision making. ( IV.An opportunity cost is associated with using a resource in one activity instead of another. V.The breakeven volume is the quantity for which the unit cost is minimized. ( VI.If Sonja invested $10,000 in a good mutual fund that pays an average return of 10%, the investment will be worth $16,110 five years from now. ( VII.One thousand dollars invested grew to be $3,000 six years hence. If the interest was compounded yearly, the interest rate on this investment was 20%.( VIII.In developing cash flow diagrams the convention is to use a negative cash flow for receipts. IX.Interest compounding daily than continuous compounding for a known interest rate will provide a larger yield. ( X.In order to use the gradient series factors to solve a set of given cash flows, the cash flows must increase or decrease gradually by the same amount every year, starting year 2 and must have zero cash flow in year 1. (

Fig: 1

Fig: 2

Fig: 3

Fig: 4

Fig: 5

Fig: 6

Fig: 7

Fig: 8

Fig: 9

Fig: 10