Engineering Economics
Return on investment ratio is the ratio of the:

Net income to owner’s equity
Cost of goods sold to average cost of inventory at hand
Net credit sales to average net receivable
Market price per share to earnings per share

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Engineering Economics
The institute of Electronics and Communications Engineers of the Philippines (IECEP) is planning to put up its own building. Two proposals being considered are:A. The construction of the building now to cost P 400,000B. The construction of a smaller building now to cost P300,000 and at the end of 5 years, an extension to be added to cost P 200,000.By how much is proposal B more economical than proposal A if interest rate is 20% and depreciation to be neglected?

P 19,518.03
P 19,624.49
P 19,122.15
P 19,423.69

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