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Engineering Economics

Engineering Economics
All the proceeds which are received by the business as a result of the sale of goods is called ______.

Net revenue
Total sales
Gross income
Net income

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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.

$ 5,000,000.00
$ 5,010,000.00
$ 5,050,000.00
$ 5,025,000.00

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Engineering Economics
The profit derived from a project or business enterprise without consideration of obligations to financial contributors and claims of others based on profit is known as ______.

Yield
Earning value
Economic return
Gain

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Engineering Economics
The process of determining the value or worth of a physical property for specific reason is called ______.

Economy
Investment
Depletion
Valuation

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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
Physical depreciation
Functional depreciation
Demand depreciation

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Engineering Economics
The price at which the callable bond will be redeemed from the bondholder is called ______.

Call value
Face value
Redemption value
Par value

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