Engineering Economics.

Make-vs-buy decisions, TCO analysis, technical debt quantification, cloud cost modeling, and productivity metrics. Covers 8 sub-skills.

• Engineering Economics · 1 of 3

  Technical Debt Quantification

  Who coined the term 'technical debt' and in what year?

  AWard Cunningham in 1992BMartin Fowler in 2003CRobert C. Martin in 2008DKent Beck in 1999

• Engineering Economics · 2 of 3

  ROI & Business Cases

  What is the main limitation of using payback period as the sole metric for evaluating engineering investments?

  AIt always favors the most expensive optionBIt cannot be calculated for software projectsCIt does not account for initial investment sizeDIt ignores all cash flows past break-even

• Engineering Economics · 3 of 3

  ROI & Business Cases

  A company is choosing a discount rate for NPV calculations on a tech investment. The CFO suggests 8%, the CTO suggests 15%. Why does this disagreement matter significantly?

  AThe discount rate doesn't affect NPV calculations at allBThe discount rate only matters for investments over $10 millionCA higher rate shrinks future benefits and can flip NPV negativeDBoth rates will produce the same NPV because they cancel out over time