# Prelim Exam - Engineering Economics

10 Questions | Total Attempts: 117  Settings  NOTE: Please make sure you have a stable internet connection before trying to take this exam. And you are not allowed to switch tabs while taking this online assessment. When you accidentally click a new tab, you should quickly click the "cancel" button (see picture below) or else it will automatically submit after 10 seconds.

• 1.
An electric power plant uses solid waste for fuel in the production of electricity. The cost y in dollars per hour to produce electricity is , where X is in megawatts. Revenue in dollars per hour from the sale of electricity is  . Find the value of x that gives maximum profit.
• 2.
The ﬁxed costs incurred by a small genetics research lab are \$(200,000-30N) per year. Variable costs are (60+(N/2))% of the annual revenue. If annual revenue is \$300,000, the annual proﬁt/loss is most nearly?
• 3.
In a gold mining area in Davao the ore contains, on the average one ounce of gold per ton. One method of processing “A” costs P(1,500-N) per ton and recovers 90% of the gold. Another method "B" costs only P(1,200+N) per tom and recovers 80% of the gold. If gold can be sold for P4,000 per ounce, which method is better and by how much?
• 4.
Five years ago, a house was purchased for P34,000. If it is sold today for P(50,000+20N), what is the rate of appreciation of its value.
• 5.
An amount of P3,000 is invested for (9+(N/2)) years at 6% compounded quarterly. Determine the amount of interest earned by the investment.
• 6.
1. If P(10,000+200N) is invested at 12% interest compounded annually, determine how many years it will take to double.
• 7.
1. If P(10,000+200N) is invested at 12% interest compounded annually, determine how many years it will take to double.
• 8.
Optimal volume (demand) occurs when total costs equal total revenues. Is it true or false?
• A.

True

• B.

False

• 9.
A related sunk cost will normally affect the prospective cash ﬂows associated with a situation. Is it true or false?
• A.

True

• B.

False

• 10.
A nonrefundable cash outlay (e.g., money spent on a passport) is an example of an opportunity cost. Is it true or false?
• A.

True

• B.

False Back to top