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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 ______.

Deduction
Depletion
Discount
Inflation

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Engineering Economics
What method is often used in municipal project evaluations where benefits and costs accrue to different segments of the community?

EUAC
Benefit-cost ratio
Annual cost method
Rate of return method

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Engineering Economics
The sunk costs include:

An unrecovered balance
All of these
A past expenditure
An invested capital that cannot be retrieved

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Engineering Economics
A investor wishes to earn 7% on his capital after payment of taxes. If the income from an available investment will be taxed at an average rate of 42%, what minimum rate of return, before payment of taxes, must the investment offer to be justified?

0.1267
0.1234
0.1207
0.1287

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Engineering Economics
A person buys a piece of lot for P 100,000 downpayment and 10 deferred semi-annual payments of P 8,000 each, starting three years from now. What is the present value of the investment if the rate of interest is 12% compounded semi-annually?

P 143,999.08
P 142,189.67
P 142,999.08
P 143,104.89

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

Capital expenditure
Loss
Capital loss
Deficit

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