Engineering Economics What is defined as the reduction of the value of certain natural resources such as mines, oil, timber, quarries, etc. due to the gradual extraction of its contents? Deflation Inflation Depreciation Depletion Deflation Inflation Depreciation Depletion ANSWER DOWNLOAD EXAMIANS APP
Engineering Economics Capitalized cost of any structure or property is computed by which formula? Annual cost – interest of first cost First cost + salvage value First cost + cost of perpetual maintenance First cost + interest of first cost Annual cost – interest of first cost First cost + salvage value First cost + cost of perpetual maintenance First cost + interest of first cost ANSWER DOWNLOAD EXAMIANS APP
Engineering Economics In computing depreciation of an equipment, which of the following represents the first cost? Initial taxes and permit fees Installation expenses The original purchase price and freight charges All of these Initial taxes and permit fees Installation expenses The original purchase price and freight charges All of these ANSWER DOWNLOAD EXAMIANS APP
Engineering Economics ______ is the element of value which a business has earned through the favorable consideration and patronage of its costumers arising from its well known and well conducted policies and operations. Goodwill Status company Big income Known owners Goodwill Status company Big income Known owners ANSWER DOWNLOAD EXAMIANS APP
Engineering Economics What refers to the cumulative effect of elapsed time on the money value of an event, based on the earning power of equivalent invested funds capital should or will earn? Yield Time value of money Interest rate Present worth factor Yield Time value of money Interest rate Present worth factor ANSWER DOWNLOAD EXAMIANS APP
Engineering Economics It is the practice of almost all banks in the Philippines that when they grant a loan, the interest for one year is automatically deducted from the principal amount upon release of money to a borrower. Let us therefore assume that you applied for a loan with a bank and the P80,000 was approved at an interest rate of 14% of which P11,200 was deducted and you were given a check of P68,800. Since you have to pay the amount of P80,000 one year after, what then will be the effective interest rate? 16.32 % 16.47 % 16.28 % 16.02 % 16.32 % 16.47 % 16.28 % 16.02 % ANSWER DOWNLOAD EXAMIANS APP
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