Specific Instructions: Solve each problem NEATLY and SYSTEMATICALLY. Show your COMPLETE solutions and BOx your final answer. Express your answers in 2 decimal places. TOPIC: ENGINEERING ECONOMICS Problem: A company invest Php 100,000 today to be repaid in 5 years in one lump sum at 12 % compounded annually. If the rate of inflation is 3 % compounded annually, approximately how much profit, in present day pesos, is realized over the five years?

A man has $ 10,000 to invest. He invests $ 4000 at 5 % and $ 3500 at 4 %. In order to have a yearly income of $ 500, he must invest the remainder at

Given per number are three options for using the capital (or other parameters) of a certain project. Pick out the best one. All values are given in Philippine peso.

You plan to buy a $137,427 house. You have $32,117 to use as the down payment. The bank offers to loan you the remainder at 18% nominal interest compounded monthly. The term of the loan is 20 years. What is your equal monthly loan payment? Enter your answer as follow: 1234.56

2.2 A construction company Y is considering to participate in the tendering process for building a toll bridge. The duration of the construction project is 5 years. The successful tenderer is allowed to collect toll from the bridge users after the completion of the project and subsequently will be responsible for maintaining the bridge. The expected cash flow transactions from this project are as follows: • Receive bank loan of RM 2,000,000 now • Annual material expenses of RM 200,000 in year 1 and expected to increase by RM 20.000 per year until year 5 • Annual bridge maintenance cost of RM 70,000 from year 6 until end of bridge life • Annual bank loan payment of RM 500,000 starting from the first year until at the end of year 10 • Progress payment received from the government: RM 4,000,000 (end of year 3) and RM 8,000,000 (end of year 5) • Toll revenue of RM 500,000 per year from year 6 until year 10 a) Construct cash flow diagram to summarize the above transactions. b) Another…

Four consumers are willing to pay these amounts for haircuts, and four haircutting businesses have these costs: Consumers' Willingness to Pay Firms' Costs Edison: $45 Firm A: $40 Kevin: $25 Firm B: $20 Maria: $15 Hilary: $35 Firm C: $10 Firm D: $30 Each firm has the capacity to produce only one haircut. For efficiency, should be given. Which businesses should cut hair? Check all that apply. Firm A Firm B Firm C Firm D Which consumers should have their hair cut? Check all that apply. Edison Hilary Kevin Maria The maximum possible total surplus is $