Engineering Economics
What is defined as the interest on a load or principal that is based only on the original amount of the loan or principal?

Effective rate of interest
Compound interest
Simple interest
Nominal rate of interest

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Engineering Economics
A construction estimate is used

To produce a statement of the approximate cost
To decide an approximation of the value of the project and not the exact cost
None of these
To judge tentatively or approximate value of the project

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Engineering Economics
The monthly demand for ice cans being manufactured by Mr. Camus is 3200 pieces. With a manual operated guillotine, the unit cutting cost is P25.00. An electrically operated hydraulic guillotine was offered to Mr. Camus at a price of P275,000.00 and which cuts by 30% the unit cutting cost. Disregarding the cost of money, how many months will Mr. Camus be able to recover the cost of the machine if he decides to buy now?

11 months
10 months
12 months
13 months

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