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Engineering Economics

Engineering Economics
The functional depreciation is sometimes called ______.

Failure depreciation
Demand depreciation
Adolescence
Life depreciation

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Engineering Economics
Miss Evilla borrowed money from a bank. She receives from the bank P1,340.00 and promised to pay P1,500.00 at the end of 9 months. Determine the corresponding discount rate or often referred to as the “banker’s discount”.

0.1346
0.1332
0.1373
0.1315

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Engineering Economics
If ‘S’ is the future capital accumulated in ‘n’ years at the rate of interest ‘I’ per annum, then present worth is:

S (1 + i)1/n
S/(1 + i)n
None of these
S (1 + i)n

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Engineering Economics
A project construction cost estimate includes:

The equipment and over head cost
The profit of the contractor
All of these
The labour and material cost

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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.

$ 5,010,000.00
$ 5,025,000.00
$ 5,000,000.00
$ 5,050,000.00

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Engineering Economics
A feasibility study shows that a fixed capital investment of P10,000,000 is required for a proposed construction firm and an estimated working capital of P2,000,000. Annual depreciation is estimated to be10% of the fixed capital investment. Determine the rate of return on the total investment if the annual profit is P3,500,000.

0.3078
0.2917
0.3012
0.2833

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