ENGINEERING ECONOMY EXAM 2 MOCK TEST AND STUDY MATERIAL WITH COST ANALYSIS AND DECISION-MAKING PROBLEMS PRACTICE

ENGINEERING ECONOMY EXAM 2 MOCK TEST
AND STUDY MATERIAL WITH COST ANALYSIS
AND DECISION-MAKING PROBLEMS PRACTICE

◉ Fair Market Value.
Answer: A price at which buyers and sellers with a reasonable
knowledge of pertinent facts and not acting under any compulsion
are willing to do business


◉ Distress Value.
Answer: Price Set by the buyer and seller on compulsion


◉ Capital.
Answer: Financial Resources deployed in an enterprise to produce
goods and services.


(e.g. Land, Building, equipment, money etc.)


◉ Equity.
Answer: Capital deployed in the form of ownership of an enterprise


◉ Debt.

, Answer: Borrowed capital deployed in the enterprise


◉ Liability.
Answer: An enterprise's legal debts or obligations that arise during
the course of business operations.


◉ Assets.
Answer: An economic resource of entity.


(including money resources, physical resources, and intangible
resources)


◉ Interest.
Answer: The charge for the privilege of borrowing money, typically
expressed as an annual percentage rate.


◉ Annuity.
Answer: A series of equal payments/receipts occurring at equal
periods of time.


Amount paid annually/monthly/semi-annually etc. including
reimbursement of borrowed capital and payment of interest.