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  1. The CRF (ep) is also known as: [CRF(EP) - 8% - 7], where

  2. A.

     8% is the rate of interest per year

    B.

     Money is borrowed for n = 7 years

    C.

     Both (A) and (B)

    D.

     Neither (A) nor (B)

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  3. 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.

  4. A.

     Sole proprietorship

    B.

     Entrepreneurship

    C.

     Partnership

    D.

     Corporation

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  5. A man loans P 187,400 from a bank with interest at 5% compounded annually. He agrees to pay his obligations by paying 8 equal annual payments, the first being due at the end of 10 years. Find the annual payments.

  6. A.

     P 43,600.10

    B.

     P 43,489.47

    C.

     P 43,263.91

    D.

     P 43,763.20

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  7. Keeping in view, the feasibility order of magnitude, the preliminary, conceptual or budget estimates, are prepared by:

  8. A.

     Architect/engineer

    B.

     Construction manager

    C.

     Owner himself/herself

    D.

     Construction manager

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  9. What is the reduction in the money value of capital asset is called?

  10. A.

     Capital expenditure

    B.

     Capital loss

    C.

     Loss

    D.

     Deficit

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  11. What is the increase in the money value of a capital asset is called?

  12. A.

     Profit

    B.

     Capital gain

    C.

     Capital expenditure

    D.

     Capital stock

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  13. A construction estimate is used

  14. A.

     To judge tentatively or approximate value of the project

    B.

     To produce a statement of the approximate cost

    C.

     To decide an approximation of the value of the project and not the exact cost

    D.

     None of these

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  15. If ‘P’ is principal amount, ‘I’ is the rate of interest per annum and ‘n’ is the number of periods in years, the compound amount factor (CAF) is:

  16. A.

     (1 + i)n

    B.

     (1 + i)(1/2n)

    C.

     √(n + i)

    D.

     None of these

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  17. If interest is paid more than once in a year, ‘i’ is the rate of interest per year, ‘n’ is the number of periods in years and ‘m’ is a number of periods per years, compound amount factor (CAF) is:

  18. A.

     (1 + i/m)n

    B.

     (1 + i/n)m

    C.

     (1 + i/n)1/m

    D.

     (1 + i/m)1/n

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  19. What is the term for an annuity with a fixed time span?

  20. A.

     Ordinary annuity

    B.

     Perpetuity

    C.

     Annuity certain

    D.

     Annuity due

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