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Engineering Economics

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

300
365
360
366

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Engineering Economics
The flow back of profit plus depreciation form a given project is called ______.

Earning value
Cash flow
Economic return
Capital recovery

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Engineering Economics
If ‘a’ is the base amount expenditure, ‘b’ is the increase in the operation cost each year over a period of’ 'n’ years, the total cost of maintenance is:

a - (n - 1) b
a + (n - 1) b
a + (n + 1) b
a × (n - 1) b

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Engineering Economics
A factory operator bought a diesel generator set for P 10,000.00 and agreed to pay the dealer uniform sum at the end of each year for 5 years at 8% interest compounded annually, that the final payment will cancel the debt for principal and interest. What is the annual payment?

P 2,504.57
P 2,500.57
P 2,544.45
P 2,540.56

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Engineering Economics
What is the type of annuity where the payments are made at the end of each period starting from the first period?

Annuity due
Ordinary annuity
Deferred annuity
Perpetuity

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Engineering Economics
What is defined as the investment of loan or principal which is based not only on the original amount of the loan or principal but the amount of loaned or principal plus the previous accumulated interest?

Compound interest
Effective rate of interest
Nominal rate of interest
Simple interest

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