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Civil Engineering :: Engineering Economics

  1. How long will it take money to double itself if invested at 5% compounded annually?

  2. A.

     13.7 years

    B.

     14.7 years

    C.

     14.2 years

    D.

     15.3 years


  3. 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?

  4. A.

     P 7,654.04

    B.

     P 7,731.29

    C.

     P 7,420.89

    D.

     P 7,590.12


  5. What is defined as the current assets minus inventories and prepaid expenses?

  6. A.

     Profit margin ratio

    B.

     Price-earnings ratio

    C.

     Return of investment ratio

    D.

     Quick ratio


  7. If ‘S’ is the future capital accumulated in ‘n’ years at the rate of interest ‘I’ per annum, then present worth is:

  8. A.

     S/(1 + i)n

    B.

     S (1 + i)n

    C.

     S (1 + i)1/n

    D.

     None of these


  9. Gross margin is the ratio of the gross profit to ______.

  10. A.

     Net sale

    B.

     Owner’s equity

    C.

     Inventory turnover

    D.

     Quick assets


  11. Probabilistic estimating of a construction project includes:

  12. A.

     Labour

    B.

     Productivity

    C.

     Wage scale

    D.

     All of these


  13. The Saudi Arabian Oil Refinery developed an oil well which is estimated to contain 5,000,000 barrels of oil at an initial cost of $ 50,000,000. What is the depletion charge during the year where it produces half million barrels of oil? Use Unit or Factor method in computing depletion.

  14. A.

     $ 5,000,000.00

    B.

     $ 5,010,000.00

    C.

     $ 5,025,000.00

    D.

     $ 5,050,000.00


  15. What is another term for “unit method” for computing depletion?

  16. A.

     Initial cost method

    B.

     Percentage method

    C.

     Factor method

    D.

     Sinking fund method


  17. What is the effective rate corresponding to 18% compounded daily? Take 1 year is equal to 360 days.

  18. A.

     19.61 %

    B.

     19.44 %

    C.

     19.31 %

    D.

     19.72 %


  19. Each financial ratio is generally compared by

  20. A.

     A past ratio calculated from the past financial standard of the firm

    B.

     A ratio developed by using the projected financial statement of the firm

    C.

     A ratio of some selected firms most progressive and successful at the point of consideration

    D.

     All of these