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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
Deflation
Depletion
Depreciation

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Engineering Economics
What is a government bond which has an indefinite life rather than a specific maturity?

T-bill
Debenture
Coupon
Consol

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Engineering Economics
The exact simple interest of P5,000 invested from June 21, 1995 to December 25, 1995 is P100. What is the rate of interest?

0.0392
0.039
0.0395
0.0398

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Engineering Economics
What refers to the cost of borrowing money or the amount earned by a unit principal per unit time?

Yield rate
Rate of interest
Rate of return
Economic return

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Engineering Economics
What stock represents ownership and enjoys certain preferences than ordinary stock?

Presidential stock
Preferred stock
Authorized stock
Incorporator’s stock

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Engineering Economics
The flow back of profit plus depreciation form a given project is called ______.

Capital recovery
Economic return
Earning value
Cash flow

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