ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method.

Engineering Economics
ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method.

8 years

7 eyars

10 years

9 years

8 years

7 eyars

10 years

9 years

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Engineering Economics
The ability to meet debts as they become due is known as ______.

Solvency

Liquidity

Leverage

Insolvency

Solvency

Liquidity

Leverage

Insolvency

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Engineering Economics
What is the main reason why the sinking fund method of computing depreciation is seldom used in the industry?

Rate of interest cannot be exactly determined

The initial depreciation is low

Unstable economy

The initial deprecation is high

Rate of interest cannot be exactly determined

The initial depreciation is low

Unstable economy

The initial deprecation is high

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Engineering Economics
What refers to the present worth of all the amount the bondholder will receive through his possession of the bond?

Face value of bond

Par value of bond

Value of bond

Redeemed value of bond

Face value of bond

Par value of bond

Value of bond

Redeemed value of bond

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Engineering Economics
If ‘S’ is the future capital accumulated in ‘n’ years at the rate of interest ‘I’ per annum, then present worth is:

S/(1 + i)n

S (1 + i)n

None of these

S (1 + i)1/n

S/(1 + i)n

S (1 + i)n

None of these

S (1 + i)1/n

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Engineering Economics
What is the factor name of the formula (1+i)^-n?

Capital recovery

Uniform gradient future worth

Single payment compound amount

Single payment present worth

Capital recovery

Uniform gradient future worth

Single payment compound amount

Single payment present worth

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Engineering Economics

Engineering Economics ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method.

Engineering Economics The ability to meet debts as they become due is known as ______.

Engineering Economics What is the main reason why the sinking fund method of computing depreciation is seldom used in the industry?

Engineering Economics What refers to the present worth of all the amount the bondholder will receive through his possession of the bond?

Engineering Economics If ‘S’ is the future capital accumulated in ‘n’ years at the rate of interest ‘I’ per annum, then present worth is:

Engineering Economics What is the factor name of the formula (1+i)^-n?

Engineering Economics
ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method.

Engineering Economics
The ability to meet debts as they become due is known as ______.

Engineering Economics
What is the main reason why the sinking fund method of computing depreciation is seldom used in the industry?

Engineering Economics
What refers to the present worth of all the amount the bondholder will receive through his possession of the bond?

Engineering Economics
If ‘S’ is the future capital accumulated in ‘n’ years at the rate of interest ‘I’ per annum, then present worth is:

Engineering Economics
What is the factor name of the formula (1+i)^-n?