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Engineering Economics

Engineering Economics
What is a market situation whereby there is only one buyer of an item for which there is no goods substitute?

Monopoly
Oligopoly
Monopsony
Oligopsony

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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A sum of P1,000 is invested now and left for eight years, at which time the principal is withdrawn.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?

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

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Engineering Economics
What is the present worth of a year annuity paying P 3,000.00 at the end of each year, with interest at 8% compounded annually?

P 7,654.04
P 7,731.29
P 7,590.12
P 7,420.89

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Engineering Economics
If ‘P’ is principal amount, ‘I’ is the rate of interest per annum and ‘n’ is the number of periods in years, the compound amount factor (CAF) is:

(1 + i)n
√(n + i)
(1 + i)(1/2n)
None of these

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Engineering Economics
An asset is purchased for P 9,000.00. Its estimated economic life is 10 years after which it will be sold for P 1,000.00. Find the depreciation in the first three years using sum-of-years digit method

P 3,927.27
P 3,279.27
P 3,792.72
P 3,729.27

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Engineering Economics
The Saudi Arabian Oil Refinery developed an oil well which is estimated to contain 5,000,000 barrels of oil at an initial cost of $ 50,000,000. What is the depletion charge during the year where it produces half million barrels of oil? Use Unit or Factor method in computing depletion.

$ 5,010,000.00
$ 5,050,000.00
$ 5,000,000.00
$ 5,025,000.00

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