Under ordinary simple interest, how many days is one year?
A300
B360
C365
D366
ESAS · Question Bank
Engineering Economics
13 of 208 questions match. Answer in your head first, then check the solution.
What is the term for an annuity with a fixed time span?
AOrdinary annuity
BPerpetuity
CAnnuity certain
DAnnuity due
What is the type of annuity where the payments are made at the end of each period starting from the first period?
AOrdinary annuity
BPerpetuity
CAnnuity due
DDeferred annuity
What is the type of annuity where the payments are made at the beginning of each period starting from the first period?
AOrdinary annuity
BPerpetuity
CAnnuity due
DDeferred annuity
Which is NOT an essential element of an ordinary annuity?
AThe amount of all payments are equal
BThe payments are made at equal interval of time
CThe first payment is made at the beginning of the first period
DCompound interest is paid on all amounts in the annuity
A mathematical expression also known as the present value of annuity of one is called _________
Aload factor
Bdemand factor
Csinking fund factor
Dpresent worth factor
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?
ABook value
BMarket value
CFair value
DFranchise value
Capitalized cost of a project is also known as _______
Ainfinite cost
Blife cycle cost
Clife cost
Dproject cost
What is the main reason why the sinking fund method of computing depreciation is seldom used in the industry?
AUnstable economy
BRate of interest cannot be exactly determined
CThe initial depreciation is high
DThe initial depreciation is low
Capitalized cost of any structure or property is computed by which formula?
AFirst cost + interest of first cost
BAnnual cost + interest of first cost
CFirst cost + cost of perpetual maintenance
DFirst cost + salvage value
The true value of interest rate computed by equations for compound interest for a 1 year period is known as ________
Aexpected return
Bnominal interest
Ceffective interest
Deconomic return
Which of the ff is an accelerated depreciation method?
AStraight line method and sinking fund method
BStraight line method and double declining balance method
CDouble declining balance method and SYD method
DSYD method and sinking fund method
What is an accelerated depreciation method?
AIt is one that calculates a depreciation amount greater than a straight line amount
BIt is one that calculates a depreciation amount lesser than a straight line amount
CIt is one that calculates a depreciation amount equal than a straight line amount
DIt is one that calculates a depreciation amount not in any way related to straight line amount