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Engineering Economics

Engineering Economics
How long will it take money to double itself if invested at 5% compounded annually?

13.7 years
14.2 years
15.3 years
14.7 years

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Engineering Economics
What refers to the interest rate at which the present work of the cash flow on a project is zero of the interest earned by an investment?

Rate of return
Return of investment
Yield
Economic return

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Engineering Economics
The owner of the construction company makes use of the estimate:

To assist in financial arrangements
All of these
To determine economic feasibility of the project
To determine the capital investment costs

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Engineering Economics
One banker’s year is equivalent to ______ days.

300
365
360
366

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Engineering Economics
What is the type of annuity where the first payment does not begin until some later date in the cash flow?

Perpetuity
Ordinary annuity
Annuity due
Deferred annuity

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Engineering Economics
If interest is paid more than once in a year, ‘i’ is the rate of interest per year, ‘n’ is the number of periods in years and ‘m’ is a number of periods per years, compound amount factor (CAF) is:

(1 + i/n)1/m
(1 + i/m)1/n
(1 + i/m)n
(1 + i/n)m

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