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Engineering Economics

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

Call value
Par value
Face value
Redemption value

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Engineering Economics
A sum of P1,000 is invested now and left for eight years, at which time the principal is withdrawn. The interest has accrued is left for another eight years. If the effective annual interest rate is 5%, what will be the withdrawal amount at the end of the 16th year?

P693.12
P702.15
P700.12
P705.42

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Engineering Economics
What is the present worth of a P500 annuity starting at the end of the third year and continuing to the end of the fourth year, if the annual interest rate is 10 %?

P 727.17
P 714.71
P 731.17
P 717.17

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Engineering Economics
What type of depreciation is due to the reduction of the physical ability of an equipment or asset to produce results?

Functional depreciation
Physical depreciation
Demand depreciation
Design depreciation

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Engineering Economics
“Under conditions of perfect competition, the price at which any given product will be supplied and purchased is the price that will result in the supply and the demand being equal.” This statement is known as the:

Law of supply
Law of diminishing return
Law of supply and demand
Law of demand

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Engineering Economics
One banker’s year is equivalent to ______ days.

360
365
366
300

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