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Engineering Economics

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

Redemption value
Call value
Face value
Par value

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Engineering Economics
A factory operator bought a diesel generator set for P 10,000.00 and agreed to pay the dealer uniform sum at the end of each year for 5 years at 8% interest compounded annually, that the final payment will cancel the debt for principal and interest. What is the annual payment?

P 2,500.57
P 2,544.45
P 2,540.56
P 2,504.57

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Engineering Economics
What is defined as the investment of loan or principal which is based not only on the original amount of the loan or principal but the amount of loaned or principal plus the previous accumulated interest?

Compound interest
Effective rate of interest
Nominal rate of interest
Simple interest

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Engineering Economics
What type of depreciation is due to the reduction in the demand for the function that the equipment or asset was designed to render?

Demand depreciation
Physical depreciation
Functional depreciation
Design depreciation

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Engineering Economics
If ‘P’ is principal amount, ‘i’ is the rate of interest and ‘n’ is the number of periods in years, then the interest factor is:

(1 + ni)
None of these
ni
(ni - 1)

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Engineering Economics
What are the common methods of computing depletion charge?

Unit method and percentage method
Discrete method and depletion allowance method
Conservative method and conventional method
Rational method and irrational method

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