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ENGINEERING ECONOMICS

Engineering Economics
If ‘S’ is the future capital accumulated in ‘n’ years at the rate of interest ‘I’ per annum, then present worth is:

None of these
S/(1 + i)n
S (1 + i)n
S (1 + i)1/n

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Engineering Economics
Gross margin is the ratio of the gross profit to ______.

Quick assets
Owner’s equity
Net sale
Inventory turnover

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Engineering Economics
Probabilistic estimating of a construction project includes:

Wage scale
All of these
Labour
Productivity

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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.

5025000
5050000
5000000
5010000

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Engineering Economics
What is another term for “unit method” for computing depletion?

Factor method
Initial cost method
Sinking fund method
Percentage method

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