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Engineering Economics

Engineering Economics
A P 1,000,000 issue of 3%, 15-year bond was sold at 95%. What is the rate of interest of this investment?

0.04
0.037
0.03
0.034

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Engineering Economics
The first cost to be incurred if the piece of equipment now in place had been bought for a second hand dealer or some other business is called ______.

First cost
Material cost
In-place value
Fixed cost

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Engineering Economics
The ability to meet debts as they become due is known as ______.

Insolvency
Liquidity
Solvency
Leverage

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Engineering Economics
Pick up the ratio which gives us sufficient information by which to judge the financial condition and performance of the firm, from the following:

Activity ratio
Financial leverage ratio
Liquidity ratio
None of these

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Engineering Economics
A college freshman borrowed P2,000 from a bank for his tuition fee and promised to pay the amount for one year. He received only the amount of P1,920 after the bank collected the advance interest of P80.00. What was the rate of discount?

0.0425
0.04
0.0367
0.0415

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Engineering Economics
The common ratio is the ratio of:

Net income to owner’s equity
Gross profit to net sales
Current assets to current liabilities
Net credit sales to average net receivable

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