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WorksheetsEngineering Economics - Elements (Exercise 4)
Total questions: 24
Worksheet time: 12mins
Using factor method. the depletion at any given year is equal to:
Initial cost of property times number of unit sold during the year divided by the total units in property
Initial cost of property divided by the number of units sold during the year
Initial cost of property times number of units sold during the year
Initial cost of property divided by the total units in property
What do you call the after-tax present worth of all depreciation effects over the depreciation period of the asset?
Asset recovery
Depreciation recovery
Period recovery
After-tax recovery
A mathematical expression also known as the present value of annuity of one is called ______ .
Load factor
Demand factor
Sinking fund factor
Present worth factor
The amount of property in which a willing buyer to a willing seller for the property when neither one is under the compulsion to buy nor to sell is called ______.
Fair value
Market value
Good will value
Book value
Salvage value is sometimes known as ______ .
Scrap value
Going value
Junk value
Second-hand value
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?
Book value
Market value
Fair value
Franchise value
What refers to the value of an intangible item which arises from the exclusive right of a company to provide a specified product and service in a certain region of the country?
Company value
Going value
Goodwill value
Franchise value
The first cost to be incurred if the piece of equipment now in place had been bought for a second hand dealer or some other business is called
Material cost
Fixed cost
First cost
In-place value
In computing depreciation of an equipment. which of the following represents the first cost? A. The original purchase price and freight charges
Installation expenses
Initial taxes and permit fees
The original purchase price and freight charges
All of these
The process of determining the value or worth of a physical property for specific reason is called
Investment
Valuation
Economy
Depletion
The unrecovered depreciation which results due to poor estimates as to the life of the equipment is called _____ .
Sunk cost
Economic life
In-place value
Annuity
What refers to the present worth of cost associated with an asset for an infinite period of time?
Annual cost
Increment cost
Capitalized cost
Operating cost
Capitalized cost of a project is also known as ______. .
Infinite cost
Life cycle cost
Life cost
Project cost
What is normally used to compare alternatives that accomplish the same purpose but have unequal lives?
Capitalized cost method
Present worth method
Annual cost method
MARR
What method is often used in municipal project evaluations where benefits and costs accrue to different segments of the community?
Annual cost method
Benefit-cost ratio
Rate of return method
EUAC
What refers to an imaginary cost representing what will not be received if a particular strategy is rejected?
Opportunity cost
Ghost cost
Horizon cost
Null cost
What is the main reason why the sinking fund method of computing depreciation is seldom used in the industry?
Unstable economy
Rate of interest cannot be exactly determined
The initial deprecation is high
The initial depreciation is low
What is the factor name of the formula (1+1)^-n?
Uniform gradient future worth
Capital recovery
Single payment present worth
Single payment compound amount
A form of business organization in which a person conducts his business alone and entirely for his own profit. being solely responsible for all its activities and liabilities.
Sole proprietorship
Entrepreneurship
Partnership
Corporation
Is an artificial being created by operation of law, having the right of succession and the process, attributes and properties expressly authorized by the law or incident to its existence.
Corporation
Property
Partnership
Organization
What is the simplest form of business organization?
Sole proprietorship
Partnership
Enterprise
Corporation
Double taxation is a disadvantage of which business organization?
Sole proprietorship
Partnership
Corporation
Enterprise
In case of bankruptcy of a partnership.
The partners are not liable for the liabilities of the partnership
The partnership assets (excluding the partners personal assets) only will be used to pay the liabilities
The partners personal assets are attached to the debt of the partnership
The partners nay sell stock to generate additional capital
Which is true about partnership?
It has a perpetual life.
It will be dissolved if one of the partners ceases to be connected with the partnership.
It can be handed down from one generation of partners to another.
Its capitalization must be equal for each partner.
