Engineering Economy

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The amount which has been spent or capital invested which for some reasons cannot be retrieved.

The length of time which the property may be operated at a profit

An investor has an option to purchase a tract of land that will be worth P20,000 in seven years. If the value of the land increases at 9% each year, how much should the investor be willing to pay now for this property?

The type of annuity where the first payment is made after several periods, after the beginning of the payment

The simplest form of business organization where in the business is own entirely by one person

Reduction in the level of national income and output usually accompanied by a fall in the general price level

It is the stock that has prior to dividends. It usually does not bring voting right to the owners and the dividend is fixed and cannot be higher than the specified amount

These are products or services that are required to support human life and activities that will be purchased in somewhat the same quantity event though the price varies considerably

A wrong act that causes injury to a person or property and for which allows a claim by the injured party to recover damages

This consists of a cash and account receivable during the next period or any other material which will be sold

The simplest form of business organization wherein the business is own entirely by one person

A man bought an equipment costing P30,000 payable in 12 quarterly payments, each installment payable at the beginning of each period. The rate of interest is 24% compounded quarterly. What is the amount of each payment

The money paid for the use of borrowed capital

A market situation where there is one seller and buyer

What is the effective rate of interest if P1000 is invested at a nominal rate of 15% compounded quarterly?

An economic condition in which there are so few suppliers of a particular product that one supplier’s actions significantly affect prices and supply

The worth of an asset as shown in the accounting records of an enterprise

This occurs in a situation where a commodity or service is supplied by a number of vendors and there is nothing to prevent additional vendors entering the market.

The addition cost of producing one more unit is

The condition in which the total income equals the total operating expenses

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