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Engineering Economics

Engineering Economics
What refers to the residual value of a company’s assets after all outside liabilities (shareholders excluded) have been allowed for?

Par value
Dividend
Equity
Return

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Engineering Economics
Capitalized cost of any structure or property is computed by which formula?

First cost + cost of perpetual maintenance
Annual cost – interest of first cost
First cost + salvage value
First cost + interest of first cost

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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?

Depreciation
Depletion
Deflation
Inflation

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Engineering Economics
The project contractor relies on the cost of the estimate:

For submission of a competitive bid for a lump-sum contract
For preparation of a definitive estimate to help negotiate contract
All of these
For a unit price contract

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Engineering Economics
What represents the share of participation in business organizations?

Franchise
Stock
Corporation
Partnership

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Engineering Economics
What refers to the cumulative effect of elapsed time on the money value of an event, based on the earning power of equivalent invested funds capital should or will earn?

Interest rate
Yield
Time value of money
Present worth factor

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