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Engineering Economics

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

Face value
Call value
Redemption value
Par value

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Engineering Economics
In what method of computing depreciation where it assumes that the loss in value is directly proportional to the age of the equipment or asset?

Sum-of-year digit method
Straight line method
Declining balance method
Sinking fund method

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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?

Return of investment
Yield
Rate of return
Economic return

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Engineering Economics
What type of bond where the corporation’s owner name are recorded and the interest is paid periodically to the owners with their asking for it?

Preferred bond
Incorporators bond
Callable bond
Registered bond

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Engineering Economics
ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method.

9 years
7 eyars
10 years
8 years

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Engineering Economics
What do you call a one-time credit against taxes?

Due credit
Credible credit
Revenue credit
Tax credit

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