Question

In engineering economic analysis the variable "A" represents:

a. An end-of-period cash receipt or disburseent in a uniform
b. A single future sum of money
c. The initial disbursement or receipt associated with a cash flow series
d. None of the above

Answer 1

In engineering economic analysis, the variable "A" represents the initial disbursement or receipt associated with a cash flow series.

Step-by-step explanation:

In engineering economic analysis, the variable "A" represents the initial disbursement or receipt associated with a cash flow series, also known as the present worth. This is the amount of money that is either put into or received from a project at the beginning or end of the project respectively.

For example, if you invest $10,000 in a project and expect to receive $15,000 at the end of the project, the initial disbursement or receipt (A) would be -$10,000 and the end-of-period cash receipt or disbursement (R) would be $15,000.

Therefore, the correct answer is option c. The initial disbursement or receipt associated with a cash flow series.