Engineering Economics
Which is NOT an essential element of an ordinary annuity?

The amounts of all payments are equal.
Compound interest is paid on all amounts in the annuity.
The first payment is made at the beginning of the first period.
The payments are made at equal interval of time.

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Engineering Economics
The monthly demand for ice cans being manufactured by Mr. Camus is 3200 pieces. With a manual operated guillotine, the unit cutting cost is P25.00. An electrically operated hydraulic guillotine was offered to Mr. Camus at a price of P275,000.00 and which cuts by 30% the unit cutting cost. Disregarding the cost of money, how many months will Mr. Camus be able to recover the cost of the machine if he decides to buy now?

13 months
10 months
12 months
11 months

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