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Engineering Economics

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

Inflation
Depletion
Deflation
Depreciation

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Engineering Economics
The alternatives which are standalone solutions for given situations in engineering involve:

The anticipated life of the assets
A purchase cost (first cost)
All of these
The anticipated resalable value (salvage value) and the interest return (rate of return)

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Engineering Economics
A manufacturer produces certain items at a labor cost of P 115 each, material cost of P 76 each and variable cost of P 2.32 each. If the item has a unit price of P 600, how many units must be manufactured each month for the manufacturer to break even if the monthly overhead is P428,000

1,033
1,043
1,053
1,037

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Engineering Economics
What is the increase in the money value of a capital asset is called?

Profit
Capital stock
Capital expenditure
Capital gain

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Engineering Economics
What is the type of annuity where the first payment does not begin until some later date in the cash flow?

Annuity due
Deferred annuity
Ordinary annuity
Perpetuity

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Engineering Economics
Miss Evilla borrowed money from a bank. She receives from the bank P1,340.00 and promised to pay P1,500.00 at the end of 9 months. Determine the corresponding discount rate or often referred to as the “banker’s discount”.

0.1346
0.1332
0.1315
0.1373

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