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Engineering Economics

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

Capital expenditure
Deficit
Loss
Capital loss

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Engineering Economics
A student plans to deposit P1,500 in the bank now and another P3,000 for the next 2 years. If he plans to withdraw P5,000 three years from after his last deposit for the purpose of buying shoes, what will be the amount of money left in the bank after one year of his withdrawal? Effective annual interest rate is 10%.

P1,459.64
P1,945.64
P1,549.64
P1,345.98

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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.

10 years
7 eyars
8 years
9 years

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Engineering Economics
The amount of company’s profit that the board of directors of the corporation decides to distribute to ordinary shareholders is called ______.

Dividend
Equity
Share of stock
Return

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Engineering Economics
What refers to the goods and services that are required to support human life, needs and activities?

Consumer products
Producer products
Necessity
Luxury

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Engineering Economics
A sum of P1,000 is invested now and left for eight years, at which time the principal is withdrawn. The interest has accrued is left for another eight years. If the effective annual interest rate is 5%, what will be the withdrawal amount at the end of the 16th year?

P700.12
P705.42
P693.12
P702.15

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