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Engineering Economics

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

Principal
Rate of interest
Interest
Simple interest

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Engineering Economics
A sum of P1,000 is invested now and left for eight years, at which time the principal is withdrawn.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?

P693.12
P700.12
P702.15
P705.42

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Engineering Economics
The ratio of the net income before taxes to net sales is called ______.

Inventory turnover
Price-earnings ratio
Profit margin ratio
Current ratio

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Engineering Economics
What is defined as the reduction of the value of certain natural resources such as mines, oil, timber, quarries, etc. due to the gradual extraction of its contents?

Depletion
Inflation
Deflation
Depreciation

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Engineering Economics
What is the type of annuity where the payments are made at the end of each period starting from the first period?

Annuity due
Ordinary annuity
Deferred annuity
Perpetuity

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Engineering Economics
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
For submission of a competitive bid for a lump-sum contract
All of these

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