Engineering Economics MCQs

What are the common methods of computing depletion charge?

A factory operator bought a diesel generator set for P 10,000.00 and agreed to pay the dealer uniform sum at the end of each year for 5 years at 8% interest compounded annually, that the final payment will cancel the debt for principal and interest. What is the annual payment?

What refers to the goods and services that are desired by human and will be acquired only after all the needs have been satisfied?

Shell Philippines, a multinational company, has a total gross income for a particular year of P 50,000,000. The taxable income after taking all deductions except for depletion is P 18,500,000. What is the allowable depletion allowance for that particular year? Take percentage of gross income for oil as 22%.

What annuity is required over 12 years to equate with a future amount of P 20,000? Assume i= 6% annually.

Both architect and engineer make use of the cost estimate of the project:

What refers to the present worth of cost associated with an asset for an infinite period of time?

The interest calculated on the basis of 365 days a year, is known as:

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