Engineering economics

1. Using factor method, the depletion at any given year is equal to: A. Initial cost of property times number of unit sold during the year divided by the total units in property B. Initial cost of property divided by the number of units sold during the year C. Initial cost of property times number of units sold during the year D. Initial cost of property divided by the total units in property

Initial cost of property times number of unit sold during the year divided by the total units in property
Initial cost of property divided by the number of units sold during the year
Initial cost of property times number of units sold during the year
Initial cost of property divided by the total units in property

Detailed SolutionUsing factor method, the depletion at any given year is equal to: A. Initial cost of property times number of unit sold during the year divided by the total units in property B. Initial cost of property divided by the number of units sold during the year C. Initial cost of property times number of units sold during the year D. Initial cost of property divided by the total units in property

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3. Perfect monopoly exists only if: A. the single vendor can prevent the entry of all other vendors in the market B. the single vendor gets the absolute franchise of the product C. the single vendor is the only one who has the permit to sell D. the single vendor is the only one who has the knowledge of the product

the single vendor can prevent the entry of all other vendors in the market
the single vendor gets the absolute franchise of the product
the single vendor is the only one who has the permit to sell
the single vendor is the only one who has the knowledge of the product

Detailed SolutionPerfect monopoly exists only if: A. the single vendor can prevent the entry of all other vendors in the market B. the single vendor gets the absolute franchise of the product C. the single vendor is the only one who has the permit to sell D. the single vendor is the only one who has the knowledge of the product

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5. What is normally used to compare alternatives that accomplish the same purpose but have unequal lives? A. Capitalized cost method B. Present worth method C. Annual cost method D. MARR

Capitalized cost method
Present worth method
Annual cost method
MARR

Detailed SolutionWhat is normally used to compare alternatives that accomplish the same purpose but have unequal lives? A. Capitalized cost method B. Present worth method C. Annual cost method D. MARR

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6. It is the practice of almost all banks in the Philippines that when they grant a loan, the interest for one year is automatically deducted from the principal amount upon release of money to a borrower. Let us therefore assume that you applied for a loan with a bank and the P80,000 was approved at an interest rate of 14% of which P11,200 was deducted and you were given a check of P68,800. Since you have to pay the amount of P80,000 one year after, what then will be the effective interest rate? A. 16.02 % B. 16.28 % C. 16.32 % D. 16.47 %

16.02%
16.28%
16.32%
16.47%

Detailed SolutionIt is the practice of almost all banks in the Philippines that when they grant a loan, the interest for one year is automatically deducted from the principal amount upon release of money to a borrower. Let us therefore assume that you applied for a loan with a bank and the P80,000 was approved at an interest rate of 14% of which P11,200 was deducted and you were given a check of P68,800. Since you have to pay the amount of P80,000 one year after, what then will be the effective interest rate? A. 16.02 % B. 16.28 % C. 16.32 % D. 16.47 %

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10. What refers to the cumulative effect of elapsed time on the money value of an event, based on the earning power of equivalent invested funds capital should or will earn? A. Present worth factor B. Interest rate C. Time value of money D. Yield

Present worth factor
Interest rate
Time value of money
Yield

Detailed SolutionWhat refers to the cumulative effect of elapsed time on the money value of an event, based on the earning power of equivalent invested funds capital should or will earn? A. Present worth factor B. Interest rate C. Time value of money D. Yield

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