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Engineering Economics

Engineering Economics
What refers to a document that shows proof of legal ownership of a financial security?

Coupon
Check
Bank note
Bond

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Engineering Economics
Aside from many sellers and many buyers, which one is a characteristic of perfect competition?

Free market entry and exit
Perfect information and absence of all economic friction
Homogeneous product
All of these

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Engineering Economics
What is defined as the investment of loan or principal which is based not only on the original amount of the loan or principal but the amount of loaned or principal plus the previous accumulated interest?

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

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Engineering Economics
______ is the element of value which a business has earned through the favorable consideration and patronage of its costumers arising from its well known and well conducted policies and operations.

Known owners
Goodwill
Status company
Big income

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Engineering Economics
What is the type of annuity where the first payment does not begin until some later date in the cash flow?

Annuity due
Ordinary annuity
Deferred annuity
Perpetuity

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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 231.56
P 236.20
P 212.90
P 222.67

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