A feasibility study shows that a fixed capital investment of P10,000,000 is required for a proposed construction firm and an estimated working capital of P2,000,000. Annual depreciation is estimated to be10% of the fixed capital investment. Determine the rate of return on the total investment if the annual profit is P3,500,000.

Engineering Economics
A feasibility study shows that a fixed capital investment of P10,000,000 is required for a proposed construction firm and an estimated working capital of P2,000,000. Annual depreciation is estimated to be10% of the fixed capital investment. Determine the rate of return on the total investment if the annual profit is P3,500,000.

30.12 %

30.78 %

28.33 %

29.17 %

30.12 %

30.78 %

28.33 %

29.17 %

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Engineering Economics
“When one of the factors of production is fixed in quantity or is difficult to increase, increasing the other factors of production will result in a less than proportionate increase in output”. This statement is known as the:

Law of supply

Law of demand

Law of supply and demand

Law of diminishing return

Law of supply

Law of demand

Law of supply and demand

Law of diminishing return

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Engineering Economics
What refers to the value of an intangible item which arises from the exclusive right of a company to provide a specified product and service in a certain region of the country?

Franchise value

Goodwill value

Going value

Company value

Franchise value

Goodwill value

Going value

Company value

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Engineering Economics
The institute of Electronics and Communications Engineers of the Philippines (IECEP) is planning to put up its own building. Two proposals being considered are:A. The construction of the building now to cost P 400,000B. The construction of a smaller building now to cost P300,000 and at the end of 5 years, an extension to be added to cost P 200,000.By how much is proposal B more economical than proposal A if interest rate is 20% and depreciation to be neglected?

P 19,423.69

P 19,518.03

P 19,122.15

P 19,624.49

P 19,423.69

P 19,518.03

P 19,122.15

P 19,624.49

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Engineering Economics
The monthly demand for ice cans being manufactured by Mr. Camus is 3200 pieces. With a manual operated guillotine, the unit cutting cost is P25.00. An electrically operated hydraulic guillotine was offered to Mr. Camus at a price of P275,000.00 and which cuts by 30% the unit cutting cost. Disregarding the cost of money, how many months will Mr. Camus be able to recover the cost of the machine if he decides to buy now?

11 months

12 months

10 months

13 months

11 months

12 months

10 months

13 months

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Engineering Economics
A factory operator bought a diesel generator set for P 10,000.00 and agreed to pay the dealer uniform sum at the end of each year for 5 years at 8% interest compounded annually, that the final payment will cancel the debt for principal and interest. What is the annual payment?

P 2,544.45

P 2,500.57

P 2,504.57

P 2,540.56

P 2,544.45

P 2,500.57

P 2,504.57

P 2,540.56

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Engineering Economics

Engineering Economics “When one of the factors of production is fixed in quantity or is difficult to increase, increasing the other factors of production will result in a less than proportionate increase in output”. This statement is known as the:

Engineering Economics What refers to the value of an intangible item which arises from the exclusive right of a company to provide a specified product and service in a certain region of the country?

Engineering Economics A factory operator bought a diesel generator set for P 10,000.00 and agreed to pay the dealer uniform sum at the end of each year for 5 years at 8% interest compounded annually, that the final payment will cancel the debt for principal and interest. What is the annual payment?

Engineering Economics
“When one of the factors of production is fixed in quantity or is difficult to increase, increasing the other factors of production will result in a less than proportionate increase in output”. This statement is known as the:

Engineering Economics
What refers to the value of an intangible item which arises from the exclusive right of a company to provide a specified product and service in a certain region of the country?

Engineering Economics
A factory operator bought a diesel generator set for P 10,000.00 and agreed to pay the dealer uniform sum at the end of each year for 5 years at 8% interest compounded annually, that the final payment will cancel the debt for principal and interest. What is the annual payment?