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PE practice questions and answers

You must choose between four pieces of comparable equipment based on the costs and salvage values given below. All four pieces have a life of 8 years.

The discount rate is 12%. Ignore taxes. The two most preferable projects and the approximate difference between their present worth values based on least cost are:

(A) A and C, $170

(B) B and D, $170

(C) A and C, $234

(D) B and D, $234

The Correct Answer

The Principles and Practice of Engineering exam is the examination required for one to become a Professional Engineer (PE) in the United States. It is the second exam required, coming after the Fundamentals of Engineering exam.