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Engineering Economics

Engineering Economics
What is the feature of some bonds whereby the issuer can redeem it before it matures?

Callability
Return clause
Call class
Recall clause

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Engineering Economics
What rate of interest compounded annually is the same as the rate of interest of 8% compounded quarterly?

0.0812
0.0824
0.0807
0.0816

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Engineering Economics
A young engineer borrowed P 10,000 at 12% interest and paid P 2,000 per annum for the last 4 years. What does he have to pay at the end of the fifth year in order to pay off his loan?

P 6,922.93
P 6,292.93
P 6,222.39
P 6,999.39

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Engineering Economics
What is the type of annuity where the payments are made at the end of each period starting from the first period?

Annuity due
Perpetuity
Deferred annuity
Ordinary annuity

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Engineering Economics
What do you call the after-tax present worth of all depreciation effects over the depreciation period of the asset?

Period recovery
After-tax recovery
Depreciation recovery
Asset recovery

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Engineering Economics
The first cost to be incurred if the piece of equipment now in place had been bought for a second hand dealer or some other business is called ______.

Fixed cost
In-place value
Material cost
First cost

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