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.Management Sciences
Category: Engineering Economy
Which is NOT an essential element of an ordinary annuity ?
A. The amounts of all payments are equal.
B. The payments are made at equal interval of time.
C. The first payment is made at the beginning of the first period.
D. Compound interest is paid on all amounts in the annuity.
If there are many sellers and few buyers, the market situation is ______________________?
A. Duopsony
B. Oligopoly
C. Oligopsony
D. Monopoly
A telephone switchboard 100 pair cable can be made up with either enameled wire or tinned wire. There will be 400 soldered connections. The cost of soldering a connection on the enameled wire will be P 1.65 on the tinned wire, it will be P 1.15. A 100- pair cable made up with enameled wire cost P 0.55 per linear foot and those made up of tinned wire cost P 0.75 per linear foot. Determine the length of cable run in feet so that the cost of each installation would be the same ?
A. 1,000 feet
B. 1,040 feet
C. 1,100 feet
D. 1,120 feet
A _____________ is a market situation where economies of scale are so significant that cost are only minimized when the entire output of an industry is supplied by a single producer so that the supply costs are lower under monopoly that under perfect competition ?
A. Perfect monopoly
B. Bilateral monopoly
C. Natural monopoly
D. Ordinary monopoly
What market situation exists where there are few sellers and few buyers ?
A. Oligopoly
B. Oligopsony
C. Bilateral oligopoly
D. Bilateral Oligopsony
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
What is the type of annuity that does not have a fixed time span but continues indefinitely or forever ?
A. Ordinary annuity
B. Perpetuity
C. Annuity due
D. Deferred annuity
What method is often used in municipal project evaluations where benefits and costs accrue to different segments of the community ?
A. Annual cost method
B. Benefit-cost ratio
C. Rate of return method
D. EUAC
How long will it take money to double itself if invested at 5% compounded annually ?
A. 13.7 years
B. 14.7 years
C. 14.2 years
D. 15.3 years
A P 1,000,000 issue of 3%, 15-year bond was sold at 95%. What is the rate of interest of this investment ?
A. 3.0%
B. 3.4%
C. 3.7%
D. 4.0%
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