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ENGINEERING ECONOMICS

Engineering Economics
The common ratio is the ratio of:

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

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Engineering Economics
The deliberate lowering of the price of a nation’s currency in terms of the accepted standard (Gold, American dollar or the British pound) is known as ______.

Currency float
Currency devaluation
Currency appreciation
Currency depreciation

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Engineering Economics
The declining balance method is also known as ______.

Constant percentage method
Modified sinking fund method
Double percentage method
Modified SYD method

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Engineering Economics
The true value of interest rate computed by equations for compound interest for a 1 year period is known as ______.

Nominal interest
Effective interest
Economic return
Expected return

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Engineering Economics
Capitalized cost of a project is also known as ______.

Life cycle cost
Project cost
Infinite cost
Life cost

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