Question

When an engineer prepares a feasibility study, what economic information must she possess in order to do it correctly?

A) engineering specification

B) expert opinion about this project

C) macroeconomic situation in the world

D) potential future costs and benefits of the project E) the level of uncertainty

Answer 1

Correct option is option (D)

Option (D) : potential future costs and benefits of the project.

Explanation :- Talking from economic point of view, any engineering project can be visualized in terms of its costs and benefits over time. A feasibility study is for determining that whether a project or idea or concept is likely to be transformed into a practical and successful business entity. A feasibility study incorporates the cost-benefit analysis. So, when an engineer prepares a feasibility study, potential future costs and benefits of the project are some of the economic information which she must possess in order to do it correctly. So, option (D) is the correct option to this question.