Engineering Economics 6023 PDF

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Engineering Economics BL By: Rina Grace M. DematawaranQuestion 1CorrectMark 2 out of 2.Remove flag Question textAn equipment costing P250, 000 has an estimated life of 15 years with a book value of P30, 000 at the end of the period. Compute the book value after 10 years using the sum of year's digit...

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Engineering Economics BL By: Rina Grace M. Dematawaran Question 1 Correct Mark 2.00 out of 2.00

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Question text An equipment costing P250, 000 has an estimated life of 15 years with a book value of P30, 000 at the end of the period. Compute the book value after 10 years using the sum of year's digit method. Select one: a. d=P11, 500 b. Cn=P57, 500 c. Cn=P67, 500 d. Cn=P58, 000 Question 2 Correct Mark 2.00 out of 2.00

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Question text A one bagger concrete mixer can be purchase with a down payment of P8,000 and equal installment of P600 each paid at the end of every month for the next 12 months. If money is worth 12% compounded monthly, determine the equivalent cash price of the mixer. Select one: a. P14,883.05 b. P14,783.05 c. P14,753.05

d. P14,853.05 Question 3 Correct Mark 2.00 out of 2.00

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Question text An equipment costing P250, 000 has an estimated life of 15 years with a book value of P30, 000 at the end of the period. Compute the depreciation charge on the tenth year using the sum of year's digit method. Select one: a. d=P10, 500 b. d=P10, 000 c. d=P11, 500 d. d=P11, 000 Question 4 Correct Mark 2.00 out of 2.00

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Question text A man invest P10,000 now for the college education of his 2 year old son. If the fund earns 14% effective, how much will the son get each year starting from his 18th to the 22th birthday? Select one: a. P20, 796.64 b. P20, 791.64 c. P20, 786.64 d. P20, 781.64 Question

5

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Question text A certain machine costs 2.5M while its salvage value is 150,000 at the end of 8 years. Determine its book value at the end of 4 years using the Sum of the Digits method. Select one: a. 802,778 b. 778,802 c. 872,708 d. 878,702 Quiz #4 Question 2 Correct Mark 3.00 out of 3.00

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Question text A P100, 000, 6% bond, pays dividend semi - annually and will be redeemed at 110% on July 1, 1996, to yield an investor 4%, compounded semi - annually. Select one: a. P113, 456.98 b. P100, 000.00 c. P112, 786.65 d. P114, 481.14 Question 4 Correct Mark 3.00 out of 3.00

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Question text A man paid P110, 000 for a P100, 000 bonds that pays P4000 per year. In 20 years, the bond will be redeemed for P105, 000. What net rate of interest will the man obtain on his investment? Select one: a. 3.47% b. 3.56% c. 3.40% d. 3.37% Question 3 Correct Mark 2.00 out of 2.00

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Question text A certain machine costs 2.5M while its salvage value is 150,000 at the end of 8 years. Determine its book value at the end of 4 years using the Straight Line Method.al annual cost of the bonds until they mature? Select one: a. P33, 915.05 b. P37, 345.78 c. P44, 667.98 d. P34, 515.05 Question 3 Correct Mark 2.00 out of 2.00

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Question text A man wants to make 14% nominal interest compounded semi - annually on a bond investment. How much should the man be willing to pay bow for a 12%, P10, 000 bonds that will mature in 10 years and pays interest semi - annually? Select one: a. P8, 940.50 b. P2, 584.19 c. P867.82 d. P3, 118.05

Midterm Question 1 Correct Mark 2.00 out of 2.00

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Question text An equipment costing P250, 000 has an estimated life of 15 years with a book value of P30, 000 at the end of the period. Compute the book value after 10 years using sinking fund method assuming i=8%. Select one: a. Cn=P132, 622.60 b. Cn=P103, 333.30 c. Cn=P125, 666.67 d. Cn=P138, 567.60 Question

3

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Question text A P10,000.00 bond with a rate of 10% payable annually is to be redeemed at par value after five years. Determine the selling price to yield 8% Select one: a. P10,598.54 b. P10,798.54 c. P10,698.54 d. P10,898.54 Question 4 Correct Mark 2.00 out of 2.00

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Question text An equipment costing P250, 000 has an estimated life of 15 years with a book value of P30, 000 at the end of the period. Compute the depreciation charge on the 10th year using declining balance method. Select one: a. d=P9, 456.78;Cn=P67, 456.98 b. d=P9, 235.93;Cn=P59, 987.34 c. d=P9, 235.93;Cn=P60, 832.80 d. d=P8, 987.45;Cn=P60, 832.80 Question 8 Correct Mark 2.00 out of 2.00

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Question text A P20 000.00 bond is sold now for P18 500.00. Determine the redemption price at the end of seven years, if the yield is 12% semi-annually and the rate is 10% payable every six months. Select one: a. P20,761.66 b. P20,861.66 c. P20,111.66 d. P20,811.66 Question 11 Correct Mark 2.00 out of 2.00

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Question text A lathe for a machine shop cost P60,000 if paid in cash. On the installment plan, a purchaser should pay P20,000 down payment and 10 quarterly installment, first due at the end of the first year after compounded quarterly. Determine the quarterly installment. Select one: a. P5,589.18 b. P5,539.18 c. P5,439.18 d. P5,489.18 Question 12 Correct Mark 2.00 out of 2.00

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Question text What is the present worth of a 3 years annuity paying P3,000 at the end of each year, with interest at 8% compounded annually? Select one: a. P7,531.29 b. P7,831.29 c. P7,731.29 d. P7,631.29 Question 13 Correct Mark 2.00 out of 2.00

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Question text A farmer bought a tractor costing P25,000 payable in 10 semi annual payments, each installment payable at the beginning of each period. If the rate of interest is 26% compounded semi-annually, determine the amount of each installment. Select one: a. P4,017.20 b. P4,177.20 c. P4,077.20 d. P4,117.20 Question 15 Correct Mark 2.00 out of 2.00

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Question text An asset is purchased for P500, 000.00. The salvage value in 25 years is P100,000.00. What is the total depreciation in the first three years using straight - line method? Select one: a. P16, 000.00 b. P48, 000.00 c. P32, 000.00 d. P24, 000.00 Question 16 Correct Mark 2.00 out of 2.00

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Question text A company issued 100 bonds of P1,000 face value each, redeemable at par at the end of 15 years to accumulate the funds required for redemption. The firm established a sinking fund consisting of annual deposits, the interest rate of the fund being 4%. What was the principal in the fund at the end of 12th year? Select one: a. F=P75,341 b. F=P75,241 c. F=P75,141 d. F=P75,041 Question 19 Correct Mark 2.00 out of 2.00

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Question text A P50 000.00 bond with a rate of 8% payable quarterly may be purchased for P47 500.00. If it may be redeemed after eight years, determine the bond's yield to maturity. Select one: a. 9.26% b. 9.18% c. 9.16% d. 9.28% Question 20 Correct Mark 2.00 out of 2.00

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Question text If money is worth 10% yearly, compounded quarterly, what monthly savings is required monthly in order to have P200, 000 at the end of 10 years? Select one: a. P918.82 b. P866.99 c. P878.98 d. P981.28 Question 21 Correct Mark 2.00 out of 2.00

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Question text The maintenance cost of an equipment is P15 000.00 per year and its capitalized cost at 6% interest is P1.8M. If the equipment has a salvage value of P30 000.00 and has to be renewed at cost after 10 years, find its original cost. Select one: a. P700340.00 b. P700 240.00 c. P701 340.00 d. P701 240.00 Question 23 Correct Mark 2.00 out of 2.00

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Question text An asset is purchased for P500, 000.00. The salvage value in 25 years is P100, 000.00. What is the total depreciation in the first three years using straight - line method? Select one: a. P24,000.00 b. P32,000.00 c. P48,000.00 d. P16,000.00 Question 5 Correct Mark 2.00 out of 2.00

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Question text A bond with a par value of P2,000 and with a bond rate of 9% payable annually is to be redeemed at P2,200 at the end of 6 years from now. If it is sold now, what should be the selling price to yield 8%? Select one: a. P2,328 b. P2,318 c. P2,228 d. P2,218 Question 9 Correct Mark 2.00 out of 2.00

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Question text An equipment costing P250, 000 has an estimated life of 15 years with a book value of P30, 000 at the end of the period. Compute the depreciation charge and its book value after 10 years using straight - line method. Select one: a. Cn=P103, 666.67 b. Cn=P105, 333.30 c. Cn=P103, 333.30 d. Cn=P105, 666.67 Question 10 Correct Mark 2.00 out of 2.00

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Question text An equipment costing P3, 015, 000 has an estimated life of 12 years with a salvage value of P200, 000 at the end of the period. Compute the book value at the end of 7 years using Declining Book Balance method. Select one: a. C7=P 619,132 b. C7=P 639,132 c. C7=P 629,132 d. C7=P 609,132

Feedback Your answer is correct. Question 11 Correct Mark 2.00 out of 2.00

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Question text An equipment costing P3, 015, 000 has an estimated life of 12 years with a salvage value of P200, 000 at the end of the period. Compute the book value at the end of 7 years using sinking fund method assuming Select one: a. C7=P 1,691,422.85 b. C7=P 1,671,422.85 c. C7=P 1,681,422.85 d. C7=P 1,701,422.85

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Your answer is correct. Question 12 Correct Mark 2.00 out of 2.00

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Question text At 6%, find the capitalized cost of a bridge whose costs is P200M and life is 20 years, if the bridge must be partially rebuilt at a cost of P100M at the end of each 20 years. Select one: a. P245, 310, 000 b. P246, 310, 000 c. P245, 300, 000 d. P246, 300, 000 Question 15 Correct Mark 2.00 out of 2.00

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Question text A certain machine costs 2.5M while its salvage value is 150,000 at the end of 8 years. Determine its book value at the end of 4 years using the declining balance method if k =0.12. Select one: a. 1,499,238 b. 1,449,238 c. 1,949,238 d. 1,994,238 Question

17

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Question text An asset is purchased for P120, 000.00. Its estimated economic life is 10 years, after which it will be sold for P12, 000.00. Find the depreciation for the first year using the sum - of - the - year's digit, (SYD). Select one: a. P18,400.00 b. P20,000.00 c. P19,636.00 d. P21,080.00

Question 19 Correct Mark 2.00 out of 2.00

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Question text The maintenance cost of an equipment is P15 000.00 per year and its capitalized cost at 6% interest is P1.8M. If the equipment has a salvage value of P30 000.00 and has to be renewed at cost after 10 years, find its original cost. Select one: a. P700340.00 b. P700 240.00 c. P701 340.00 d. P701 240.00 Question 22 Correct Mark 2.00 out of 2.00

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Question text A P50 000.00 bond with a rate of 8% payable quarterly may be purchased for P47 500.00. If it may be redeemed after eight years, determine the current yield. Select one: a. 8.62% b. 8.42% c. 8.32% d. 8.52% Question 1 Correct Mark 2.00 out of 2.00

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Question text An equipment costing P250, 000 has an estimated life of 15 years with a book value of P30, 000 at the end of the period. Compute the book value after 10 years using declining balance method. Select one: a. Cn=P60, 832.80 b. Cn=P61, 975.80 c. Cn=P59, 987.34 d. Cn=P67, 456.98 Question 20 Not yet answered Marked out of 2.00

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Question text A certain machine costs 2.5M while its salvage value is 150,000 at the end of 8 years. Determine its book value at the end of 4 years using the Straight Line Method. Select one: a. 1,385,000 b. 1,835,000 c. 1, 825,000 d. 1,325,000 Question 19 Not yet answered Marked out of 2.00

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Question text A community wishes to purchase an existing utility valued at P500, 000 by selling 5% bonds that will mature In 30 years. The money to retire the bond will be raised by paying equal annual amounts into a sinking fund that will earn 4%. What will be the total annual cost of the bonds until they mature? Select one: a. P37, 345.78 b. P33, 915.05 c. P34, 515.05 d. P44, 667.98 Question 23 Correct Mark 2.00 out of 2.00

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Question text You need a P40, 000 per year for four years to go college. Your father invested P50, 000 in a 7% account for your education when you were born. If you withdraw the P40, 000 at the end of your 17th, 18th, 19th and 20th years, how much money will be left in the account at the end of your 21st year? Select one: a. P17, 000 b. P16, 000 c. P19, 000 d. P18, 000 Question 24 Correct Mark 2.00 out of 2.00

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Question text An equipment costing P250, 000 has an estimated life of 15 years with a book value of P30, 000 at the end of the period. Compute the depreciation charge and its book value after 10 years using straight - line method. Select one: a. d=P14, 333.33 b. d=P13, 666.67 c. d=P13, 333.33 d. d=P14, 666.67 Question 7 Correct Mark 2.00 out of 2.00

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Question text An equipment costing P3, 015, 000 has an estimated life of 12 years with a salvage value of P200, 000 at the end of the period. Compute the book value at the end of 7 years using sum of the year’s digit method. Select one: a. C7=P 744,346.15 b. C7=P 742,346.15 c. C7=P 741,346.15 d. C7=P 743,346.15 Question 5 Correct Mark 2.00 out of 2.00

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Question text A certain barangay wishes to purchase a certain equipment which be used in its beautification program valued at P500, 000 by selling bonds worth 5% that will mature in 30 years. The amount to retire the bond will be raised by paying equal annual amount into a sinking fund that will earn 4%. What will be the total annual cost of the bond until they mature. Assume that the bonds can be sold at par and redeemable at par. Select one: a. Annual Cost of Bond=P33,815 b. Annual Cost of Bond=P34,115 c. Annual Cost of Bond=P33,915 d. Annual Cost of Bond=P34,015 Question 18 Correct Mark 2.00 out of 2.00

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Question text A P5000.00, 8% bond that pays interest semi-annually will mature in seven years. Determine the price to realize a yield to maturity of 10% Select one: a. P4,761.10 b. P4,861.10 c. P4,661.10 d. P4,561.10 Question 2 Correct Mark 2.00 out of 2.00

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Question text Find the present value in pesos of a perpetuity of P15,000 payable semiannually if money is worth 8% compounded quarterly. Select one: a. P371,387.36 b. P371,397.36 c. P371,297.36 d. P371,287.36 Quiz #5 Question 1 Correct Mark 2.00 out of 2.00

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Question text If an investment of 3,000,000 will have an annual revenue of 1,200,000 and an annual cost of 700,000 including depreciation for 8 years, determine if this is feasible if money is worth 12% using ROR. Select one: a. 16.77% > 12%;justified b. 16.67% > 12%;justified c. 15.77% > 12%;justified d. 15.67% > 12%;justified Question 3 Correct Mark 2.00 out of 2.00

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Question text An investment of P2, 700, 000 can be made in a project that will produce a uniform annual revenue of P1, 850, 400 for 5 years and then have a salvage value of 10% of the investment. Out-of-pocket costs for operation and maintenance will be P810, 000 per year. Taxes and insurance will be 4% of the first cost per year. The company expects capital to earn 25% interest before income taxes. Is this a desirable investment? Use Present Worth method. Select one: a. PW of the net cash flows: -P10,510...