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

A)
Annual cost
B)
Capitalized cost
C)
Operating cost
D)
Increment cost

Correct Answer :   Capitalized cost

Recently Updated in Engineering Economy Questions
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)
3.7%
B)
4.0%
C)
3.0%
D)
3.4%

Correct Answer : Option (C) :   3.0%

Under the depletion allowance method in computing depreciation, the depletion charge is equal to either ______ whichever is smaller.
A)
Fixed percentage of gross income or the net taxable income
B)
Fixed percentage of gross income or 50% of the net taxable income
C)
50% of the fixed percentage of gross income or the net taxable income
D)
50% of the fixed percentage of gross income or 50% of the net taxable income

Correct Answer : Option (B) :   Fixed percentage of gross income or 50% of the net taxable income

What is defines as the analysis and evaluation of the monetary consequences by using the theories and principles of economics to engineering applications, designs and projects?
A)
Engineering economy
B)
Design cost analysis
C)
Engineering cost analysis
D)
Economic Analysis

Correct Answer : Option (D) :   Economic Analysis

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