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Civil Engineering :: Engineering Economics

  1. Refer to the cash flow diagram of uniform gradient in a cash flow (in the given figure), the gradient is:

  2. A.

     Rs. 10000 per year

    B.

     Rs. 15000 per year

    C.

     Rs. 20000 per year

    D.

     Rs. 25000 per year


  3. A loan of P5,000 is made for a period of 15 months, at a simple interest rate of 15%, what future amount is due at the end of the loan period?

  4. A.

     5,937.50

    B.

     5,873.20

    C.

     5,712.40

    D.

     5,690.12


  5. A P 1,000,000 issue of 3%, 15-year bond was sold at 95%. What is the rate of interest of this investment?

  6. A.

     3.0%

    B.

     3.4%

    C.

     3.7%

    D.

     4.0%


  7. A investor wishes to earn 7% on his capital after payment of taxes. If the income from an available investment will be taxed at an average rate of 42%, what minimum rate of return, before payment of taxes, must the investment offer to be justified?

  8. A.

     12.07 %

    B.

     12.34 %

    C.

     12.67 %

    D.

     12.87 %


  9. What refers to the value of an asset which a disinterested third party, different from the buyer and seller, will determine in order to establish a price acceptable to both parties?

  10. A.

     Book value

    B.

     Market value

    C.

     Fair value

    D.

     Franchise value


  11. What is another term for “current assets”?

  12. A.

     Fixed assets

    B.

     Non-liquid assets

    C.

     Liquid assets

    D.

     Ccash


  13. What is the ordinary interest on P1,500.50 for 182 days at 5.2%?

  14. A.

     P39.01

    B.

     P39.82

    C.

     P39.45

    D.

     P39.99


  15. In what method of computing depreciation where it assumes that a sinking fund is established in which funds will accumulate for replacement purposes?

  16. A.

     Straight line method

    B.

     Sinking fund method

    C.

     Sum-of-year digit method

    D.

     Declining balance method


  17. What is another term for “acid-test ratio”?

  18. A.

     Current ratio

    B.

     Quick ratio

    C.

     Profit margin ratio

    D.

     Price-earnings ratio


  19. What refers to the amount of a product made available for sale?

  20. A.

     Supply

    B.

     Demand

    C.

     Product

    D.

     Good