ENGINEERING ECONOMICS QUIZ

What is the basic accounting equation?

Assets = liability + owner’s equity

Liability = assets + owners’ equity

Owner’s equity = assets + liability

Owner’s equity = liability – assets

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YOUR ANSWER : ?

Capitalized cost of any structure or property is computed by which formula?

First cost + salvage value

Annual cost – interest of first cost

First cost + interest of first cost

First cost + cost of perpetual maintenance

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The project contractor relies on the cost of the estimate:

For a unit price contract

For preparation of a definitive estimate to help negotiate contract

All of these

For submission of a competitive bid for a lump-sum contract

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The person desires to pay off the amount in 10 equal annual instalments. The amount of each installment is:

Rs. 5638

Rs. 6638

None of these

Rs. 7738

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A student plans to deposit P1,500 in the bank now and another P3,000 for the next 2 years. If he plans to withdraw P5,000 three years from after his last deposit for the purpose of buying shoes, what will be the amount of money left in the bank after one year of his withdrawal? Effective annual interest rate is 10%.

P1,459.64

P1,345.98

P1,945.64

P1,549.64

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What do you call the after-tax present worth of all depreciation effects over the depreciation period of the asset?

After-tax recovery

Period recovery

Asset recovery

Depreciation recovery

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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?

Nominal rate of interest

Simple interest

Compound interest

Effective rate of interest

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The product of CAF (S P) and PWF (S P) is:

1

43833

43832

43834

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What is the term for an annuity with a fixed time span?

Annuity certain

Annuity due

Ordinary annuity

Perpetuity

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The monthly demand for ice cans being manufactured by Mr. Camus is 3200 pieces. With a manual operated guillotine, the unit cutting cost is P25.00. An electrically operated hydraulic guillotine was offered to Mr. Camus at a price of P275,000.00 and which cuts by 30% the unit cutting cost. Disregarding the cost of money, how many months will Mr. Camus be able to recover the cost of the machine if he decides to buy now?

10 months

13 months

12 months

11 months

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YOUR ANSWER : ?

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