Engineering Economics
In a cash-flow diagram:

All of these
A vertical arrow pointing up indicates a positive cash flow
Time 0 is considered to be the present
Time 1 is considered to be the end of time period 1

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Engineering Economics
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?

0.1628
0.1602
0.1647
0.1632

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Engineering Economics
The key to profitable operation for project cost control, is:

To keep the project cost equal to subsequent construction budget
None of these
To keep the project cost within the cost budget and knowing when and where job costs are deviating
To keep the project cost equal to original cost estimate

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