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Engineering Economics

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

365
300
360
366

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Engineering Economics
What refers to the present worth of the probable future net earnings?

Going concern value
Earning value
Total fair value
Total market value

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Engineering Economics
What is the present worth of a P500 annuity starting at the end of the third year and continuing to the end of the fourth year, if the annual interest rate is 10 %?

P 714.71
P 717.17
P 727.17
P 731.17

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Engineering Economics
An asset is purchased for P 9,000.00. Its estimated economic life is 10 years after which it will be sold for P 1,000.00. Find the depreciation in the first three years using sum-of-years digit method

P 3,927.27
P 3,792.72
P 3,729.27
P 3,279.27

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Engineering Economics
A VOM has a selling price of P 400. If its selling price is expected to decline at a rate of 10% per annum due to obsolescence, what will be its selling price after 5 years?

P 236.20
P 222.67
P 212.90
P 231.56

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Engineering Economics
Aside from many sellers and many buyers, which one is a characteristic of perfect competition?

Perfect information and absence of all economic friction
Free market entry and exit
Homogeneous product
All of these

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