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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?

Depletion
Depreciation
Inflation
Deflation

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Engineering Economics
A man loans P 187,400 from a bank with interest at 5% compounded annually. He agrees to pay his obligations by paying 8 equal annual payments, the first being due at the end of 10 years. Find the annual payments.

P 43,600.10
P 43,489.47
P 43,263.91
P 43,763.20

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Engineering Economics
The CRF (ep) is also known as: [CRF(EP) - 8% - 7], where

8% is the rate of interest per year
Both (A) and (B)
Neither (A) nor (B)
Money is borrowed for n = 7 years

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Engineering Economics
Cash money and credit necessary to establish and operate an enterprise are generally called ______.

Assets
Funds
Capital
Liabilities

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Engineering Economics
What refers to the claim of anyone to ownership?

Equity
Proprietorship
Assets
Liability

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

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

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