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    Mste 19

    Uploaded by

    Kevin Banez

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    © All Rights Reserved
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    Mste 19

    Uploaded by

    Kevin Banez
    9 views2 pages

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    MSTE 19

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    © © All Rights Reserved

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    9 views2 pages

    Mste 19

    Uploaded by

    Kevin Banez

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    © All Rights Reserved
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    REVIEW INNOVATIONS

    APRIL 2024 CE BOARD EXAM REFRESHER MSTE - 19


    INSTRUCTION: Select the correct answer for A. P67,683 C. P1,115
    each of the following questions. Mark only B. P2,497 D. P151,509
    one answer for each item by shading the box
    corresponding to the letter of your choice 8. RI purchased a new service van.The van is
    on the answer sheet provided. STRICTLY NO depreciated over a 10-year period with
    ERASURES ALLOWED. GOOD LUCK. salvage value P500,000. If the van will
    worth P870,550 after six years using
    NOTE: A times B is represented by A×B or declining balance method, howmuch did RI
    A*B. A raised to the power n is purchase the van.
    expressed as A^n. All problems are 1 A. P2,500,000 C. P2,000,000
    point each. B. P1,500,000 D. P3,000,000

    1. Peter Minuit paid $24 for the rights to 9. If the van was purchased for 1,960,000,
    Manhattan Island in 1626. What are the determine the worth of the van after eight
    corresponding values in 2006? i=5% years using double declining balance
    A.$2,704,860,602 C.$2,860,704,602 method.
    B.$2,740,860,602 D.$2,860,407,602 A. P328,883.40 C. P411,041.80
    B. P263,066.70 D. P500,000.00
    2. A credit charge interest at 1.5% per
    month. What is the nominal interest 10. Smith, Jones and Rodriguez is an
    rates? engineering design firm considering the
    purchase and installation of a network
    A. 18.00% C. 15.10%
    of computer workstations for Php 90,000.
    B. 1.51% D. 19.56%
    The expected life of the system is 8
    3. A new engineer plans on depositing $250
    years, when will have a salvage value of
    per month in an account that pays 6% $18,000. Using the straight-line
    annual interest with monthly compounding. depreciation, calculate the annual
    How much of a down payment for a house depreciation?
    has the engineer accumulated after a A. 7000 C. 9000
    year? B. 8000 D. 10,000
    A. 3,804 C. 4,803
    B. 3,408 D. 3,084 11. Northern Construction and Engineering
    plans on opening an office in Duluth.
    4. MoreTech Drilling may buy a patent with Over the next 25 years, the office is
    14 years of life left. If MoreTech spends expected to have a positive cash flow of
    $1.5M to implement the technology, it $250,000 per year. In year 25; the office
    expects net revenues of $650,000 per year can be sold for $1M. At an interest rate
    for the patent’s life. If MoreTech’s of 12%, what is the equivalent present
    discount rate for money’s time value is worth (PW)?
    10%, what is the maximum price that A. $2,910,608 C. $2,608,910
    MoreTech can pay for the patent? B. $2,019,608 D. $2,810,680
    A. 3.3 M C. 5.5M
    B. 4.4 M D. 6.6M 12. A 15-year municipal bond was issued 5
    years ago. It pays 8% interest
    5. Find the present value of perpetuity of semiannually on its face value of $15,000.
    P100 payable semi-annually if money is At the end of 15 years, the face value is
    with 4% compounded quarterly. paid. If your time value of money, or i,
    A. 10,000 C.2490 is 12.36%, what price should you offer for
    B. 4975 D.2500 the bond?
    A. $15,159 C.$15,195
    6. An engineer has received $10 000 from his B. $11,559 D.$11,955
    employer for a patent disclosure. He has
    decided to invest the money in a 15-year 13. A state historic park has maintenance
    savings certificate that pays 8% per year, costs of $40K for the first year. Due to
    compounded annually. What will be then increased use, these costs increase by
    final value of his investment, in terms of $2K per year. Assuming an interest rate
    today's dollars, if inflation continues at of 5% and perpetual life, what is the
    the rate of 6% per year? capitalized cost?
    Hint: (P/A,5%,∞)= 20
    A. 13,362 C. 13,236
    B. 13,423 D. 13,342 (P/G,5%,∞)= 400
    (A/P,5%,∞)= 0.05
    7. Crystal Lake Village is building a sewage (P/G,5%,∞)= 0.0025
    treatment facility that has a 35-year A. 1.2 M C. 2.0 M
    design life. This facility includes a B. 1.6 M D. 2.4 M
    pump that costs $13,000 and that will
    last 7 years. The pump has no salvage
    value, and its energy costs are included
    with other energy costs. If i = 8%, find
    the EAC for the series of five pumps.
    APRIL 2024 CE BOARD EXAM REFRESHER MSTE - 19

    14. Jade has predicted that there will be 7


    percent per year inflation of prices
    during the next 10 years. If this proves
    to be correct, an item that presently
    sells for $10 would 10 years hence?

    A.18.67 C.16.67
    B. 17.67 D. 19.67
    15. Calculate the benefit/cost ratio for a
    highway project with the following
    benefits and costs. The project life is 40
    years, the interest rate is 10%, and the
    project’s right-of-way is worth $5M in 40
    years.
    Construction Cost (includes acquiring
    Right-of-way) =$20M
    Annual Maintenance = $350k

    Repaving every 8 yrs = $3M

    Annual Value of lives saved = $1M

    Time savings for commercial traffic = $1.25M


    Time savings for commuter and recreational
    traffic = $1M

    A. 1.23 C. 1.33
    B. 1.22 D. 1.32

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