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- Subject
- Engineering Economycivil-engineering-mcqs › engineering-economy
- Published
- 21 Jan 2019
- Last updated
- 28 May 2026
Explanation
The initial cost of equipment for depreciation purposes includes the purchase price, freight charges, installation costs, and any initial taxes or permit fees. Therefore, all these expenses are collectively considered.
More Engineering Economy MCQs
Practice related questions from the same subject.
- 1.What type of business structure involves an individual running the enterprise independently, bearing full responsibility for all operations and debts, and retaining all profits?
- 2.What is the term used for the factor represented by the formula \[ \frac{i(1+i)^n}{(1+i)^n - 1} \]?
- 3.What is the term used for the factor represented by the formula (1 + i)^-n?
- 4.Why is the sinking fund method of calculating depreciation rarely adopted in practice?
- 5.Which term describes a hypothetical expense that reflects the benefits lost when a specific option is not chosen?
- 6.Which technique is commonly applied in assessing municipal projects when the advantages and expenses impact various community groups?
- 7.Which approach is typically employed to evaluate different options that serve the same function but have varying lifespans?
- 8.What is another term for the capitalized cost of a project?
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