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Engineering Economics

Engineering Economics
What is used to record historical financial transactions?

Balance check
General journal system
Ledger system
Bookkeeping system

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Engineering Economics
By the condition of a will, the sum of P20,000 is left to a girl to be held in trust fund by her guardian until it amounts to P50,000. When will the girl receive the money if fund invested at 8% compounded quarterly?

11.87 years
11.46 years
11.57 years
11.23 years

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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 212.90
P 231.56
P 236.20
P 222.67

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Engineering Economics
What is defined as the interest on a load or principal that is based only on the original amount of the loan or principal?

Simple interest
Nominal rate of interest
Effective rate of interest
Compound interest

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Engineering Economics
First Benchmark Publishing’s gross margin is 50% of sales. The operating costs of the publishing are estimated at 15% of sales. If the company is within the 40% tax bracket, determine the percent of sales is their profit after taxes?

0.18
0.2
0.19
0.21

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Engineering Economics
What is normally used to compare alternatives that accomplish the same purpose but have unequal lives?

Annual cost method
Present worth method
MARR
Capitalized cost method

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