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Engineering Economics

Engineering Economics
What is considered as the basic consuming or demanding unit of a commodity?

Producer
Manufacturer
Buyer or consumer
Seller

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Engineering Economics
Shell Philippines, a multinational company, has a total gross income for a particular year of P 50,000,000. The taxable income after taking all deductions except for depletion is P 18,500,000. What is the allowable depletion allowance for that particular year? Take percentage of gross income for oil as 22%.

P 9,358.41
P 9,308.45
P 9,250.00
P 9,228.45

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

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Engineering Economics
Which of these gives the lowest effective rate of interest?

12.35 % compounded annually
11.60 % compounded annually
12.20 % compounded annually
11.90 % compounded annually

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Engineering Economics
Annuities involve:

A series of payments
Payment at equal time intervals
All of these
All payments of equal amount

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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:

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

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