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ENGINEERING ECONOMICS

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)1/n
None of these
S (1 + i)n
S/(1 + i)n

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Engineering Economics
Gross margin is the ratio of the gross profit to ______.

Net sale
Quick assets
Owner’s equity
Inventory turnover

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Engineering Economics
Probabilistic estimating of a construction project includes:

Labour
Productivity
Wage scale
All of these

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Engineering Economics
The Saudi Arabian Oil Refinery developed an oil well which is estimated to contain 5,000,000 barrels of oil at an initial cost of $ 50,000,000. What is the depletion charge during the year where it produces half million barrels of oil? Use Unit or Factor method in computing depletion.

5010000
5000000
5025000
5050000

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Engineering Economics
What is another term for “unit method” for computing depletion?

Sinking fund method
Percentage method
Initial cost method
Factor method

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