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Engineering Economics

Engineering Economics
What refers to the amount of money paid for the use of borrowed capital?

Principal
Simple interest
Rate of interest
Interest

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Engineering Economics
Miss Calledo deposited P 1,000, P 1,500 and P 2,000 at the end of the 2nd year, 3rd year and 4th year, respectively in a savings account which earned 10% per annum. How much is in the account at the end of the 4th year?

P 4,840.00
P 4,820.00
P 4,880.00
P 4,860.00

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Engineering Economics
Gross margin is the ratio of the gross profit to ______.

Owner’s equity
Quick assets
Inventory turnover
Net sale

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Engineering Economics
An asset is purchased for P 9,000.00. Its estimated economic life is 10 years after which it will be sold for P 1,000.00. Find the depreciation in the first three years using sum-of-years digit method

P 3,927.27
P 3,792.72
P 3,729.27
P 3,279.27

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Engineering Economics
The construction manager uses the estimate of the project

All of these
To tell the owner of the project to take his/her financial decision
To control the project during its construction
To develop bids on the project

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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:

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

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