Engineering Economics
What type of depreciation is due to the reduction of the physical ability of an equipment or asset to produce results?

Design depreciation
Demand depreciation
Functional depreciation
Physical depreciation

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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?

10 months
12 months
11 months
13 months

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