Present Worth Analysis — Engineering Board Exam Practice Questions

8 free engineering board exam reviewer questions on Present Worth Analysis (Engineering Economics), each with the correct answer and a worked solution.

  1. Machine A costs P40,000, lasts 4 years, has a salvage value of P5,000, and annual costs of P8,000. Machine B costs P70,000, lasts 6 years…
  2. A facility costs P80,000, must be replaced every 5 years with a salvage value of P10,000, and has annual costs of P6,000 forever. At 8%…
  3. An investment pays P40,000 at the end of each year for 8 years, with the first payment at the end of year 4. Find its present worth at 10%…
  4. A machine costs P500,000, lasts 10 years, and has a salvage value of P50,000. Maintenance is P20,000 in year 1 and increases by P2,000…
  5. Machine A costs P90,000, lasts 3 years with no salvage value, and has annual costs of P10,000. To compare it with a 6-year alternative…
  6. Machine A costs P250,000, has annual costs of P30,000, and a salvage value of P50,000. Machine B costs P300,000, has annual costs of…
  7. An insurance plan pays P10,000 at the end of each quarter for 5 years. Find its present worth at 8% compounded quarterly.
  8. A machine costs P120,000, has annual operating costs of P15,000 for 6 years, and a salvage value of P20,000 at the end of year 6. Find the…