Engineering Economics
ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method.

8 years
9 years
10 years
7 eyars

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Engineering Economics
The financial analysis:

All of these
Helps to judge the success of the firm's financial plans
Helps a share holder to compare the expected return on his investment in the firm against the expected return from other alternative investment
Helps a bank to know the financial position of the firm for granting a loan to the firm

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Engineering Economics
Each financial ratio is generally compared by

A ratio of some selected firms most progressive and successful at the point of consideration
All of these
A ratio developed by using the projected financial statement of the firm
A past ratio calculated from the past financial standard of the firm

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