Engineering Economics MCQs

Lands, buildings, plants and machineries are example of what type of asset?

What represents the ownership of stockholders who have a residual claim on the assets of the corporation after all other claims have been settled?

The institute of Electronics and Communications Engineers of the Philippines (IECEP) is planning to put up its own building. Two proposals being considered are:A. The construction of the building now to cost P 400,000B. The construction of a smaller building now to cost P300,000 and at the end of 5 years, an extension to be added to cost P 200,000.By how much is proposal B more economical than proposal A if interest rate is 20% and depreciation to be neglected?

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

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

Which is true about corporation?

Which is true about partnership?

What refers to the interest rate at which the present work of the cash flow on a project is zero of the interest earned by an investment?

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