Perpetuity and Capitalized Cost — Engineering Board Exam Practice Questions

6 free engineering board exam reviewer questions on Perpetuity and Capitalized Cost (Engineering Economics), each with the correct answer and a worked solution.

1. Find the present value of a perpetuity that pays P5,000 per year, at 8% annual interest.
2. What annual payment can a perpetuity of P200,000 principal generate at 6% annual interest?
3. Find the capitalized cost of a structure that requires an initial cost of P500,000 and annual maintenance of P20,000 forever, at 8% annual…
4. A machine costs P300,000 and requires P15,000 annual maintenance forever. Find its capitalized cost at 10% interest.
5. A bridge needs periodic replacement of a P400,000 component every 10 years, forever, at 6% interest. Find the present worth of all future…
6. Find the capitalized cost of a project with a first cost of P1,000,000, no salvage value, and an annual operating cost of P50,000 forever…