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Engineering Economics

Engineering Economics
The person desires to pay off the amount in 10 equal annual instalments. The amount of each installment is:

Rs. 5638
None of these
Rs. 7738
Rs. 6638

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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.

5000000
5025000
5010000
5050000

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

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Engineering Economics
The alternatives which are standalone solutions for given situations in engineering involve:

A purchase cost (first cost)
The anticipated resalable value (salvage value) and the interest return (rate of return)
All of these
The anticipated life of the assets

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Engineering Economics
What refers to the interest rate at which the present work of the cash flow on a project is zero of the interest earned by an investment?

Yield
Economic return
Rate of return
Return of investment

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Engineering Economics
What refers to the ratio of the interest payment to the principal for a given unit of time and usually expressed as a percentage of the principal?

Rate of return
Return of investment
Yield
Interest rate

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