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Engineering Economics

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

Capital recovery
Earning value
Cash flow
Economic return

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Engineering Economics
You borrow P3,500.00 for one year from a friend at an interest rate of 1.5% per month instead of taking a loan from a bank at a rate of 18% per year. How much lesser you will pay by borrowing the money from the bank?

P44.55
P54.66
P 62.44
P37.56

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Engineering Economics
If ‘P’ is principal amount, ‘i’ is the rate of interest and ‘n’ is the number of periods in years, then the interest factor is:

None of these
(1 + ni)
(ni - 1)
ni

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Engineering Economics
What is defined as a financial security note issued by business or corporation and by the government as a means of borrowing long-term fund?

Bond
Securities
Bank notes
T-bills

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Engineering Economics
What method is often used in municipal project evaluations where benefits and costs accrue to different segments of the community?

Benefit-cost ratio
Annual cost method
EUAC
Rate of return method

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Engineering Economics
If interest is paid more than once in a year, ‘i’ is the rate of interest per year, ‘n’ is the number of periods in years and ‘m’ is a number of periods per years, compound amount factor (CAF) is:

(1 + i/n)m
(1 + i/n)1/m
(1 + i/m)n
(1 + i/m)1/n

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