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Engineering Economics

Engineering Economics
The ability to meet debts as they become due is known as ______.

Insolvency
Leverage
Liquidity
Solvency

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Engineering Economics
As applied to capitalized asset, the distribution of the initial cost by a periodic changes to operation as in depreciation or the reduction of a debt by either periodic or irregular prearranged programs is called ______.

Amortization
Annuity
Annuity factor
Capital recovery

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Engineering Economics
What is the present worth of two P 100 payments at the end of the third year and fourth year? The annual interest rate is 8%.

P 150.56
P 151.09
P 153.89
P 152.88

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Engineering Economics
If interest is paid more than once in a year, ‘i’ is the rate of interest per year, ‘n’ is the number of periods in years and ‘m’ is a number of periods per years, compound amount factor (CAF) is:

(1 + i/m)1/n
(1 + i/n)m
(1 + i/n)1/m
(1 + i/m)n

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Engineering Economics
What type of bond which can be redeemed before maturity date?

Registered bond
Preferred bond
Incorporators bond
Callable bond

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Engineering Economics
A bond without any security behind them except a promise to pay by the issuing corporation is called ______.

Joint bond
Trust bond
Common bond
Debenture bond

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