A feasibility study shows that a fixed capital investment of P10,000,000 is required for a proposed construction firm and an estimated working capital of P2,000,000. Annual depreciation is estimated to be10% of the fixed capital investment. Determine the rate of return on the total investment if the annual profit is P3,500,000.

Engineering Economics
A feasibility study shows that a fixed capital investment of P10,000,000 is required for a proposed construction firm and an estimated working capital of P2,000,000. Annual depreciation is estimated to be10% of the fixed capital investment. Determine the rate of return on the total investment if the annual profit is P3,500,000.

0.2833

0.3078

0.3012

0.2917

0.2833

0.3078

0.3012

0.2917

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Engineering Economics
ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method.

9 years

8 years

7 eyars

10 years

9 years

8 years

7 eyars

10 years

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Engineering Economics
What market situation exists where there is only one buyer and only one seller?

Bilateral monopsony

Monopoly

Monopsony

Bilateral monopoly

Bilateral monopsony

Monopoly

Monopsony

Bilateral monopoly

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Engineering Economics
Which is true about partnership?

It will be dissolved if one of the partners ceases to be connected with the partnership.

It can be handed down from one generation of partners to another.

It has a perpetual life.

Its capitalization must be equal for each partner.

It will be dissolved if one of the partners ceases to be connected with the partnership.

It can be handed down from one generation of partners to another.

It has a perpetual life.

Its capitalization must be equal for each partner.

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Engineering Economics
Capitalized cost of any structure or property is computed by which formula?

First cost + salvage value

Annual cost – interest of first cost

First cost + cost of perpetual maintenance

First cost + interest of first cost

First cost + salvage value

Annual cost – interest of first cost

First cost + cost of perpetual maintenance

First cost + interest of first cost

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Engineering Economics
A student plans to deposit P1,500 in the bank now and another P3,000 for the next 2 years. If he plans to withdraw P5,000 three years from after his last deposit for the purpose of buying shoes, what will be the amount of money left in the bank after one year of his withdrawal? Effective annual interest rate is 10%.

P1,945.64

P1,459.64

P1,345.98

P1,549.64

P1,945.64

P1,459.64

P1,345.98

P1,549.64

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Engineering Economics

Engineering Economics ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method.

Engineering Economics What market situation exists where there is only one buyer and only one seller?

Engineering Economics Which is true about partnership?

Engineering Economics Capitalized cost of any structure or property is computed by which formula?

Engineering Economics
ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method.

Engineering Economics
What market situation exists where there is only one buyer and only one seller?

Engineering Economics
Which is true about partnership?

Engineering Economics
Capitalized cost of any structure or property is computed by which formula?