Engineering economics questions with answers
213 multiple-choice questions. Open any question for its answer and explanation.
- Ratio analysis of a construction firm is used for analysis by
- A farmer selling eggs at 50 pesos a dozen gains 20%. If he sells the eggs at the same price after the costs of the eggs rises by 12.5%, how much will be his new gain in percent? A. 6.89 % B. 6.65 % C. 6.58 % D. 6.12 %
- What is the main reason why the sinking fund method of computing depreciation is seldom used in the industry?
- The declining balance method is also known as ______.
- The true value of interest rate computed by equations for compound interest for a 1 year period is known as ______.
- Capitalized cost of a project is also known as ______.
- Salvage value is sometimes known as ______.
- The ability to meet debts as they become due is known as ______.
- The ability to convert assets to cash quickly is known as ______.
- The depletion allowance method of computing depletion is commonly known as ______.
- The profit derived from a project or business enterprise without consideration of obligations to financial contributors and claims of others based on profit is known as ______.
- 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?
- What is a stock of a product which is held by a trade body or government as a means of regulating the price of that product?
- 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?
- The project contractor relies on the cost of the estimate
- The owner of the construction company makes use of the estimate
- What market situation exists where there is only one buyer and only one seller?
- What is defined as the reduction or fall of the value of an asset due to constant use and passage of time?
- What type of depreciation is due to the reduction of the physical ability of an equipment or asset to produce results?
- A man invested P110,000 for 31 days. The net interest after deducting 20% withholding tax is P890.36. Find the rate of return annually. A. 11.50 % B. 11.75 % C. 11.95 % D. 12.32 %
- Mr. Bacani borrowed money from the bank. He received from the bank P1,842 and promised to repay P2,000 at the end of 10 months. Determine the rate of simple interest. A. 12.19 % B. 12.03 % C. 11.54 % D. 10.29 %
- What bond whose security is a mortgage on certain specified assets of the corporation?
- In the cash-flow diagram shown in the given figure
- In the cash flow diagram shown in the given figure
- Refer to the cash flow diagram of uniform gradient in a cash flow (in the given figure), the gradient is