Engineering Economics
Liquidity ratios are used:

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
To obtain much insight into the present cash solvency of the firm and the firm
All of these

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Engineering Economics
The monthly demand for ice cans being manufactured by Mr. Camus is 3200 pieces. With a manual operated guillotine, the unit cutting cost is P25.00. An electrically operated hydraulic guillotine was offered to Mr. Camus at a price of P275,000.00 and which cuts by 30% the unit cutting cost. Disregarding the cost of money, how many months will Mr. Camus be able to recover the cost of the machine if he decides to buy now?

12 months
13 months
10 months
11 months

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