A. Railroad bond
B. Equipment obligation bond
C. Equipment bond
D. Equipment trust bond
✅ The correct answer is option B.
Engineering Economy MCQs
42. A investor wishes to earn 7% on his capital after payment of taxes. If the income from an available investment will be taxed at an average rate of 42%, what minimum rate of return, before payment of taxes, must the investment offer to be justified ?
A. 12.07 %
B. 12.34 %
C. 12.67 %
D. 12.87 %
✅ The correct answer is option A.
43. What refers to the amount of money paid for the use of borrowed capital ?
A. Interest
B. Rate of interest
C. Simple interest
D. Principal
✅ The correct answer is option A.
44. A bond without any security behind them except a promise to pay by the issuing corporation is called __________________?
A. Joint bond
B. Debenture bond
C. Trust bond
D. Common bond
✅ The correct answer is option B.
45. A loan of P5,000 is made for a period of 15 months, at a simple interest rate of 15%, what future amount is due at the end of the loan period ?
A. 5,937.50
B. 5,873.20
C. 5,712.40
D. 5,690.12
✅ The correct answer is option A.
46. A manufacturing firm maintains one product assembly line to produce signal generators. Weekly demand for the generators is 35 units. The line operates for 7 hours per day, 5 days per week. What is the maximum production time per unit in hours required of the line to meet the demand ?
A. 1.0 hour per unit
B. 1.2 hours per unit
C. 1.4 hours per unit
D. 1.6 hours per unit
✅ The correct answer is option A.
47. The depletion allowance method of computing depletion is commonly known as ___________________?
A. Unit method
B. Percentage method
C. Factor method
D. Sinking fund method
✅ The correct answer is option B.
48. A machine costs of P 8,000 and an estimated life of 10 years with a salvage value of P 500. What is its book value after 8 years using straight line method ?
A. P 2,000.00
B. P 2,100.00
C. P 2,200.00
D. P 2,300.00
✅ The correct answer is option A.
49. What refers to the market situation in which any given product is supplied by a very large number of vendors and there is no restriction against additional vendors from entering the market ?
A. Perfect competition
B. Oligopoly
C. Oligopsony
D. Monopoly
✅ The correct answer is option A.
50. A type of bond to which are attached coupons indicating the interest due and the date when such interest is to be paid is called ____________________?
A. Registered bond
B. Coupon bond
C. Mortgage bond
D. Collateral trust bond
✅ The correct answer is option B.