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Engineering Economics

Engineering Economics
Present worth Annuity (PWA) is generally known as

Premium annuities
Future annuities
All of these
Income annuities

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Engineering Economics
Cash money and credit necessary to establish and operate an enterprise are generally called ______.

Capital
Assets
Liabilities
Funds

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Engineering Economics
If a seller recovers his capital along with accumulated compensating interest not in one single lump-sum payment but in periodical equal payments, over time:

Present work Annuity is availed
Capital Recovery Annuity fs availed
Sinking Fund Annuity is availed
Sinking Fund Annuity is availed

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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.

5000000
5050000
5025000
5010000

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Engineering Economics
If interest is paid more than once in a year, ‘i’ is the rate of interest per year, ‘n’ is the number of periods in years and ‘m’ is a number of periods per years, compound amount factor (CAF) is:

(1 + i/n)1/m
(1 + i/m)1/n
(1 + i/m)n
(1 + i/n)m

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Engineering Economics
What is the opposite of perfect competition?

Monopsony
Oligopoly
Oligopsony
Monopoly

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