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Engineering Economics

Engineering Economics
The price at which the callable bond will be redeemed from the bondholder is called ______.

Par value
Call value
Redemption value
Face value

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Engineering Economics
By the condition of a will, the sum of P20,000 is left to a girl to be held in trust fund by her guardian until it amounts to P50,000. When will the girl receive the money if fund invested at 8% compounded quarterly?

11.57 years
11.23 years
11.46 years
11.87 years

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

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Engineering Economics
What is normally used to compare alternatives that accomplish the same purpose but have unequal lives?

MARR
Capitalized cost method
Present worth method
Annual cost method

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Engineering Economics
Under ordinary simple interest, how many days in one year?

366
360
300
365

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Engineering Economics
An association of two or more persons for the purpose of engaging into a business for profit is called ______.

Corporation
Proprietorship
Partnership
Entrepreneurship

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