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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
Redemption value
Face value

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Engineering Economics
Earnings per share is the most important ratio for

Share holders
All of these
Company's management
Banks

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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?

Design depreciation
Functional depreciation
Demand depreciation
Physical depreciation

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

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Engineering Economics
A young engineer borrowed P 10,000 at 12% interest and paid P 2,000 per annum for the last 4 years. What does he have to pay at the end of the fifth year in order to pay off his loan?

P 6,922.93
P 6,999.39
P 6,222.39
P 6,292.93

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Engineering Economics
The sunk costs include:

An invested capital that cannot be retrieved
A past expenditure
All of these
An unrecovered balance

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