Engineering Economics
A person buys a piece of lot for P 100,000 downpayment and 10 deferred semi-annual payments of P 8,000 each, starting three years from now. What is the present value of the investment if the rate of interest is 12% compounded semi-annually?

P 142,999.08
P 143,104.89
P 143,999.08
P 142,189.67

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Engineering Economics
The institute of Electronics and Communications Engineers of the Philippines (IECEP) is planning to put up its own building. Two proposals being considered are:A. The construction of the building now to cost P 400,000B. The construction of a smaller building now to cost P300,000 and at the end of 5 years, an extension to be added to cost P 200,000.By how much is proposal B more economical than proposal A if interest rate is 20% and depreciation to be neglected?

P 19,624.49
P 19,518.03
P 19,423.69
P 19,122.15

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

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

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Engineering Economics
Which is true about corporation?

Its life is dependent on the lives of the incorporators.
It is worse type of business organization.
The stock holders of the corporation are only liable to the extent of their investments.
The minimum number of incorporators to start a corporation is three.

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