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Engineering Economics

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

Capital stock
Capital expenditure
Profit
Capital gain

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Engineering Economics
A P 1, 000, 6% bond pays dividend semiannually and will be redeemed at 110% on June 21, 204. It is bought on June 21, 2001 to yield 4% interest. Find the price of the bond.

P 1,133.78
P 1,122.70
P 1,155.06
P 1,144.81

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Engineering Economics
Salvage value is sometimes known as ______.

Second-hand value
Junk value
Scrap value
Going value

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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”.

0.1373
0.1315
0.1332
0.1346

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Engineering Economics
What refers to the present worth of the probable future net earnings?

Going concern value
Total market value
Earning value
Total fair value

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Engineering Economics
ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method.

8 years
7 eyars
10 years
9 years

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