Engineering Economy Mcqs


Q.  What is the present worth of a year annuity paying P 3,000.00 at the end of each year, with interest at 8% compounded annually ?

a. P 7,654.04
b. P 7,731.29
c. P 7,420.89
d. P 7,590.12


ANSWER: See Answer
 
No explanation is available for this question!
MCQs:  What bond whose security is a mortgage on certain specified assets of the corporation ?
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MCQs:  A bond without any security behind them except a promise to pay by the issuing corporation is called __________________?
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MCQs:  A type of bond where the corporation pledges securities which it owns such as the stock or bonds of one of its subsidiaries ?
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MCQs:  What type of bond where the corporation’s owner name are recorded and the interest is paid periodically to the owners with their asking for it ?
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MCQs:  What type of bond which can be redeemed before maturity date ?
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MCQs:  What is the feature of some bonds whereby the issuer can redeem it before it matures ?
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MCQs:  The price at which the callable bond will be redeemed from the bondholder is called ____________________?
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MCQs:  What is defined as the reduction or fall of the value of an asset due to constant use and passage of time ?
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MCQs:  In what method of computing depreciation where it assumes that the loss in value is directly proportional to the age of the equipment or asset ?
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MCQs:  In what method of computing depreciation where it assumes that a sinking fund is established in which funds will accumulate for replacement purposes ?
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MCQs:  In what method of computing depreciation where it assumes that the annual cost of depreciation is a fixed percentage of the book value at the beginning of the year ?
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MCQs:  The declining balance method is also known as ____________________?
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MCQs:  What type of depreciation is due to the reduction in the demand for the function that the equipment or asset was designed to render ?
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MCQs:  What type of depreciation is due to the reduction of the physical ability of an equipment or asset to produce results ?
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MCQs:  The functional depreciation is sometimes called ____________________?
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MCQs:  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 ?
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MCQs:  What are the common methods of computing depletion charge ?
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MCQs:  Under the depletion allowance method in computing depreciation, the depletion charge is equal to either ________________ which ever is smaller ?
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MCQs:  The depletion allowance method of computing depletion is commonly known as ___________________?
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MCQs:  What is another term for “unit method” for computing depletion ?
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