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Engineering Economics

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

Manufacturer
Producer
Buyer or consumer
Seller

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Engineering Economics
What is defined as the reduction or fall of the value of an asset due to constant use and passage of time?

Depreciation
Depletion
Inflation
Deflation

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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?

Yield
Return of investment
Rate of return
Economic return

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Engineering Economics
A feasibility study shows that a fixed capital investment of P10,000,000 is required for a proposed construction firm and an estimated working capital of P2,000,000. Annual depreciation is estimated to be10% of the fixed capital investment. Determine the rate of return on the total investment if the annual profit is P3,500,000.

0.3012
0.2917
0.3078
0.2833

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Engineering Economics
The amount of property in which a willing buyer to a willing seller for the property when neither one is under the compulsion to buy nor to sell is called ______.

Market value
Book value
Fair value
Good will value

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Engineering Economics
What refers to an imaginary cost representing what will not be received if a particular strategy is rejected?

Horizon cost
Null cost
Opportunity cost
Ghost cost

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