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Engineering Economics

Engineering Economics
Which of the following is an example of intangible asset?

Patents
Cash
Furnitures
Investment in subsidiary companies

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Engineering Economics
What is defined as any tangible economic product that contributes directly or indirectly to the satisfaction of human want?

Goods
Commodities
Services
Goods or commodities

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Engineering Economics
If interest is paid more than once in a year, ‘i’ is the rate of interest per year, ‘n’ is the number of periods in years and ‘m’ is a number of periods per years, compound amount factor (CAF) is:

(1 + i/n)m
(1 + i/n)1/m
(1 + i/m)n
(1 + i/m)1/n

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Engineering Economics
Shell Philippines, a multinational company, has a total gross income for a particular year of P 50,000,000. The taxable income after taking all deductions except for depletion is P 18,500,000. What is the allowable depletion allowance for that particular year? Take percentage of gross income for oil as 22%.

P 9,358.41
P 9,308.45
P 9,228.45
P 9,250.00

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Engineering Economics
The Saudi Arabian Oil Refinery developed an oil well which is estimated to contain 5,000,000 barrels of oil at an initial cost of $ 50,000,000. What is the depletion charge during the year where it produces half million barrels of oil? Use Unit or Factor method in computing depletion.

5010000
5025000
5050000
5000000

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Engineering Economics
What is the present worth of a P500 annuity starting at the end of the third year and continuing to the end of the fourth year, if the annual interest rate is 10 %?

P 727.17
P 717.17
P 714.71
P 731.17

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