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Engineering Economics

Engineering Economics
What is the term for an annuity with a fixed time span?

Annuity due
Ordinary annuity
Perpetuity
Annuity certain

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Engineering Economics
A VOM has a selling price of P 400. If its selling price is expected to decline at a rate of 10% per annum due to obsolescence, what will be its selling price after 5 years?

P 222.67
P 231.56
P 236.20
P 212.90

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Engineering Economics
The amount of property in which a willing buyer to a willing seller for the property when neither one is under the compulsion to buy nor to sell is called ______.

Book value
Market value
Fair value
Good will value

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Engineering Economics
In what method of computing depreciation where it assumes that the loss in value is directly proportional to the age of the equipment or asset?

Sinking fund method
Sum-of-year digit method
Straight line method
Declining balance method

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Engineering Economics
The Saudi Arabian Oil Refinery developed an oil well which is estimated to contain 5,000,000 barrels of oil at an initial cost of $ 50,000,000. What is the depletion charge during the year where it produces half million barrels of oil? Use Unit or Factor method in computing depletion.

$ 5,010,000.00
$ 5,050,000.00
$ 5,025,000.00
$ 5,000,000.00

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

Capital gain
Profit
Capital expenditure
Capital stock

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