Engineering Economics - Study Mode
[#171] The Saudi Arabian Oil Refinery developed an oil well which is estimated to contain 5,000,000 barrels of oil at an initial cost of $ 50,000,000. What is the depletion charge during the year where it produces half million barrels of oil? Use Unit or Factor method in computing depletion.
Correct Answer
(A) $ 5,000,000.00
[#172] What is another term for “unit method” for computing depletion?
Correct Answer
(C) Factor method
[#173] What is the effective rate corresponding to 18% compounded daily? Take 1 year is equal to 360 days.
Correct Answer
(D) 19.72 %
[#174] Each financial ratio is generally compared by
Correct Answer
(D) All of these
[#175] A college freshman borrowed P2,000 from a bank for his tuition fee and promised to pay the amount for one year. He received only the amount of P1,920 after the bank collected the advance interest of P80.00. What was the rate of discount?
Correct Answer
(B) 4.00 %