Engineering Economics - Study Mode

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[#151] Shell Philippines, a multinational company, has a total gross income for a particular year of P 50,000,000. The taxable income after taking all deductions except for depletion is P 18,500,000. What is the allowable depletion allowance for that particular year? Take percentage of gross income for oil as 22%.

(A) P 9,358.41

(B) P 9,228.45

(C) P 9,250.00

(D) P 9,308.45

Correct Answer

(C) P 9,250.00

[#152] What annuity is required over 12 years to equate with a future amount of P 20,000? Assume i= 6% annually.

(A) P 1,290.34

(B) P 1,185.54

(C) P 1,107.34

(D) P 1,205.74

Correct Answer

(B) P 1,185.54

[#153] Both architect and engineer make use of the cost estimate of the project:

(A) For site selection

(B) For designing of the project

(C) For choosing alternatives

(D) All of these

Correct Answer

(D) All of these

[#154] What refers to the present worth of cost associated with an asset for an infinite period of time?

(A) Annual cost

(B) Increment cost

(C) Capitalized cost

(D) Operating cost

Correct Answer

(C) Capitalized cost

[#155] The interest calculated on the basis of 365 days a year, is known as:

(A) Interest

(B) Ordinary simple interest

(C) Exact simple interest

(D) None of these

Correct Answer

(C) Exact simple interest