ENGINEERING ECONOMICS QUIZ

A sum of P1,000 is invested now and left for eight years, at which time the principal is withdrawn. The interest has accrued is left for another eight years. If the effective annual interest rate is 5%, what will be the withdrawal amount at the end of the 16th year?

P705.42

P700.12

P702.15

P693.12

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The amount of property in which a willing buyer to a willing seller for the property when neither one is under the compulsion to buy nor to sell is called ______.

Market value

Book value

Good will value

Fair value

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Annuities involve:

A series of payments

All of these

Payment at equal time intervals

All payments of equal amount

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What refers to the amount of a product made available for sale?

Supply

Demand

Good

Product

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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?

11 months

12 months

10 months

13 months

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Liquidity ratios are used:

To obtain much insight into the present cash solvency of the firm and the firm

All of these

To measure a firm’s ability to meet short-cut obligations

To compare short term obligations to short-term resources available to meet these obligations

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The financial analysis:

Helps to judge the success of the firm's financial plans

Helps a share holder to compare the expected return on his investment in the firm against the expected return from other alternative investment

Helps a bank to know the financial position of the firm for granting a loan to the firm

All of these

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What refers to the present worth of cost associated with an asset for an infinite period of time?

Operating cost

Increment cost

Capitalized cost

Annual cost

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A manufacturing firm maintains one product assembly line to produce signal generators. Weekly demand for the generators is 35 units. The line operates for 7 hours per day, 5 days per week. What is the maximum production time per unit in hours required of the line to meet the demand?

1.0 hour per unit

1.2 hours per unit

1.6 hours per unit

1.4 hours per unit

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

Annuity due

Ordinary annuity

Annuity certain

Perpetuity

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