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Engineering Economics

Engineering Economics
The difference between the present and future worth of money at some time in the future is called ______.

Inflation
Discount
Depletion
Deduction

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Engineering Economics
Capitalized cost of any structure or property is computed by which formula?

First cost + salvage value
First cost + cost of perpetual maintenance
Annual cost – interest of first cost
First cost + interest of first cost

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Engineering Economics
A sum of P1,000 is invested now and left for eight years, at which time the principal is withdrawn. The interest has accrued is left for another eight years. If the effective annual interest rate is 5%, what will be the withdrawal amount at the end of the 16th year?

P702.15
P700.12
P705.42
P693.12

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Engineering Economics
What is the increase in the money value of a capital asset is called?

Capital gain
Profit
Capital expenditure
Capital stock

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Engineering Economics
Which one of the following is included in financial ratios of the firm?

Turnover ratio
Liquidity ratio
Profitability ratio
All of these

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Engineering Economics
What refers to a document that shows proof of legal ownership of a financial security?

Check
Bond
Coupon
Bank note

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