ENGINEERING ECONOMICS QUIZ

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.

$ 5,010,000.00

$ 5,000,000.00

$ 5,025,000.00

$ 5,050,000.00

TRUE ANSWER : ?
YOUR ANSWER : ?

The declining balance method is also known as ______.

Modified sinking fund method

Constant percentage method

Double percentage method

Modified SYD method

TRUE ANSWER : ?
YOUR ANSWER : ?

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?

Effective rate of interest

Compound interest

Nominal rate of interest

Simple interest

TRUE ANSWER : ?
YOUR ANSWER : ?

A firm borrows P2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due plus P2,000 more for 2 years at 8%. What is the lump sum due?

P 3,270.34

P 3,250.34

P 3,260.34

P 3,280.34

TRUE ANSWER : ?
YOUR ANSWER : ?

Which of the following is an example of intangible asset?

Cash

Investment in subsidiary companies

Patents

Furnitures

TRUE ANSWER : ?
YOUR ANSWER : ?

What refers to the value of an intangible item which arises from the exclusive right of a company to provide a specified product and service in a certain region of the country?

Going value

Goodwill value

Franchise value

Company value

TRUE ANSWER : ?
YOUR ANSWER : ?

The more critical (or severe) test of the firm's liquidity can be judged by:

Current ratio

Debts ratio

Acid-Test (or Quick) ratio

Liquidity ratio

TRUE ANSWER : ?
YOUR ANSWER : ?

Which one of the following is not a construction estimate?

Definite estimate

None of these

Conceptual preliminary budget

Initial feasibility estimate

TRUE ANSWER : ?
YOUR ANSWER : ?

An amount of P1,000 becomes P1,608.44 after 4 years compounded bimonthly. Find the nominal interest.

0.1232

0.12

0.1189

0.1208

TRUE ANSWER : ?
YOUR ANSWER : ?

What refers to the cumulative effect of elapsed time on the money value of an event, based on the earning power of equivalent invested funds capital should or will earn?

Present worth factor

Interest rate

Yield

Time value of money

TRUE ANSWER : ?
YOUR ANSWER : ?

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