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
7 eyars
10 years

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Engineering Economics
Liquidity ratios are used:

To obtain much insight into the present cash solvency of the firm and the firm
To measure a firm’s ability to meet short-cut obligations
To compare short term obligations to short-term resources available to meet these obligations
All of these

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