Engineering Economics
The institute of Electronics and Communications Engineers of the Philippines (IECEP) is planning to put up its own building. Two proposals being considered are:A. The construction of the building now to cost P 400,000B. The construction of a smaller building now to cost P300,000 and at the end of 5 years, an extension to be added to cost P 200,000.By how much is proposal B more economical than proposal A if interest rate is 20% and depreciation to be neglected?

P 19,423.69
P 19,624.49
P 19,122.15
P 19,518.03

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Engineering Economics
A leading shoe manufacturer produces a pair of Lebron James signature shoes at a labor cost of P 900.00 a pair and a material cost of P 800.00 a pair. The fixed charges on the business are P 5,000,000 a month and the variable costs are P 400.00 a pair. Royalty to Lebron James is P 1,000 per pair of shoes sold. If the shoes sell at P 5,000 a pair, how many pairs must be produced each month for the manufacturer to break-even?

2712
2.59
2632
2890

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Engineering Economics
Which one of the following questions is relevant to the construction estimates?

Did the estimators use short cut methods which may be unrealistic in their situation
All of these
Did the estimators precisely evaluate site conditions
How much money will the contractor's risk, loosing if he were to submit bid on the raw estimate of cost

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