1. The construction of the building now to cost P 400,000
2. The construction of a smaller building now to cost P300,000 and at the end of 5 years, an extension to be added to cost P 200,000.
By how much is proposal B more economical than proposal A if interest rate is 20% and depreciation to be neglected ?
A. P 19,122.15
B. P 19,423.69
C. P 19,518.03
D. P 19,624.49
Related Mcqs:
- Shell Philippines, a multinational company, has a total gross income for a particular year of P 50,000,000. The taxable income after taking all deductions except for depletion is P 18,500,000. What is the allowable depletion allowance for that particular year? Take percentage of gross income for oil as 22%?
A. P 9,358.41
B. P 9,228.45
C. P 9,250.00
D. P 9,308.45 - A form of business organization in which a person conducts his business alone and entirely for his own profit, being solely responsible for all its activities and liabilities ?
A. Sole proprietorship
B. Entrepreneurship
C. Partnership
D. Corporation - A VOM has a selling price of P 400. If its selling price is expected to decline at a rate of 10% per annum due to obsolescence, what will be its selling price after 5 years ?
A. P 222.67
B. P 212.90
C. P 236.20
D. P 231.56 - __________________ is the element of value which a business has earned through the favorable consideration and patronage of its costumers arising from its well known and well conducted policies and operations?
A. Status company
B. Big income
C. Known owners
D. Goodwill - What is considered as the basic consuming or demanding unit of a commodity ?
A. Seller
B. Manufacturer
C. Producer
D. Buyer or consumer - What is considered as the standard unit which forms the basis of a country’s domestic money supply ?
A. Monetary unit
B. Currency
C. Foreign exchange
D. Cash or check - A machine costs of P 8,000 and an estimated life of 10 years with a salvage value of P 500. What is its book value after 8 years using straight line method ?
A. P 2,000.00
B. P 2,100.00
C. P 2,200.00
D. P 2,300.00 - An asset is purchased for P 9,000.00. Its estimated economic life is 10 years after which it will be sold for P 1,000.00. Find the depreciation in the first three years using sum-of-years digit method____________________?
A. P 3,279.27
B. P 3,927.27
C. P 3,729.27
D. P 3,792.72 - A type of bond where the corporation pledges securities which it owns such as the stock or bonds of one of its subsidiaries ?
A. Mortgage bond
B. Joint bond
C. Security bond
D. Collateral trust bond - What is defined as the reduction of the value of certain natural resources such as mines, oil, timber, quarries, etc. due to the gradual extraction of its contents ?
A. Depletion
B. Inflation
C. Depreciation
D. Deflation
