Engineering Economics
As applied to capitalized asset, the distribution of the initial cost by a periodic changes to operation as in depreciation or the reduction of a debt by either periodic or irregular prearranged programs is called ______.

Amortization
Annuity
Capital recovery
Annuity factor

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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 19,624.49
P 19,122.15
P 19,518.03
P 19,423.69

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