Given the statements IV below which choice ae includes each

Given the statements I-V below, which choice (a-e) includes each of the four fundamental
principles of engineering economics?
I. Marginal Revenue must exceed marginal cost
II. Interest is always being earned for someone
III. Additional risk is not undertaken without expected additional return
IV. A nearby dollar is worth more than a distant dollar
V. All that counts is the difference between alternatives

a. I, II, III, IV
b. I, III, IV, V
c. II, III, IV, V
d. I, II, III, V
e. I, II, IV, V

Solution

The four fundamental principles of engineering economics:

1. A nearby dollar is worth more than a distant dollar 2. All that counts are the differences among alternatives 3. Marginal revenue must exceed marginal cost 4. Additional risk is not taken without the expected additional return

thus option b is the right answer