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Engineering Economics

Engineering Economics
What refers to the claim of anyone to ownership?

Assets
Proprietorship
Equity
Liability

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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
Effective rate of interest
Nominal rate of interest
Compound interest

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Engineering Economics
What refers to the residual value of a company’s assets after all outside liabilities (shareholders excluded) have been allowed for?

Return
Par value
Dividend
Equity

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Engineering Economics
The exact simple interest of P5,000 invested from June 21, 1995 to December 25, 1995 is P100. What is the rate of interest?

0.0395
0.0392
0.0398
0.039

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Engineering Economics
What is the type of annuity that does not have a fixed time span but continues indefinitely or forever?

Annuity due
Perpetuity
Deferred annuity
Ordinary annuity

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Engineering Economics
As applied to capitalized asset, the distribution of the initial cost by a periodic changes to operation as in depreciation or the reduction of a debt by either periodic or irregular prearranged programs is called ______.

Capital recovery
Amortization
Annuity factor
Annuity

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