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Engineering Economics

Engineering Economics
A P 1,000,000 issue of 3%, 15-year bond was sold at 95%. What is the rate of interest of this investment?

0.034
0.037
0.03
0.04

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Engineering Economics
What is defined as the investment of loan or principal which is based not only on the original amount of the loan or principal but the amount of loaned or principal plus the previous accumulated interest?

Simple interest
Nominal rate of interest
Compound interest
Effective rate of interest

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Engineering Economics
What is defined as the reduction of the value of certain natural resources such as mines, oil, timber, quarries, etc. due to the gradual extraction of its contents?

Inflation
Deflation
Depletion
Depreciation

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Engineering Economics
The flow back of profit plus depreciation form a given project is called ______.

Cash flow
Earning value
Economic return
Capital recovery

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Engineering Economics
The difference between the present and future worth of money at some time in the future is called ______.

Deduction
Depletion
Inflation
Discount

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Engineering Economics
The functional depreciation is sometimes called ______.

Failure depreciation
Life depreciation
Demand depreciation
Adolescence

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