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Engineering Economics

Engineering Economics
The financial health of the company is measured in terms of:

Relative risk
Solvency
All of these
Liquidity

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Engineering Economics
A VOM has a selling price of P 400. If its selling price is expected to decline at a rate of 10% per annum due to obsolescence, what will be its selling price after 5 years?

P 231.56
P 222.67
P 212.90
P 236.20

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Engineering Economics
You borrow P3,500.00 for one year from a friend at an interest rate of 1.5% per month instead of taking a loan from a bank at a rate of 18% per year. How much lesser you will pay by borrowing the money from the bank?

P44.55
P37.56
P 62.44
P54.66

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Engineering Economics
The depletion allowance method of computing depletion is commonly known as ______.

Unit method
Sinking fund method
Percentage method
Factor method

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

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Engineering Economics
The functional depreciation is sometimes called ______.

Life depreciation
Failure depreciation
Adolescence
Demand depreciation

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