Engineering Economics
The financial analysis:

All of these
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

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Engineering Economics
A construction estimate is used

None of these
To judge tentatively or approximate value of the project
To produce a statement of the approximate cost
To decide an approximation of the value of the project and not the exact cost

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Engineering Economics
It is the practice of almost all banks in the Philippines that when they grant a loan, the interest for one year is automatically deducted from the principal amount upon release of money to a borrower. Let us therefore assume that you applied for a loan with a bank and the P80,000 was approved at an interest rate of 14% of which P11,200 was deducted and you were given a check of P68,800. Since you have to pay the amount of P80,000 one year after, what then will be the effective interest rate?

0.1628
0.1632
0.1602
0.1647

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Engineering Economics
Which one of the following questions is relevant to the construction estimates?

Did the estimators precisely evaluate site conditions
All of these
How much money will the contractor's risk, loosing if he were to submit bid on the raw estimate of cost
Did the estimators use short cut methods which may be unrealistic in their situation

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