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Engineering Economics

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

Insolvency
Leverage
Solvency
Liquidity

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Engineering Economics
What is the type of annuity where the first payment does not begin until some later date in the cash flow?

Perpetuity
Annuity due
Ordinary annuity
Deferred annuity

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Engineering Economics
Miss Evilla borrowed money from a bank. She receives from the bank P1,340.00 and promised to pay P1,500.00 at the end of 9 months. Determine the corresponding discount rate or often referred to as the “banker’s discount”.

0.1315
0.1346
0.1332
0.1373

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Engineering Economics
What do you call the after-tax present worth of all depreciation effects over the depreciation period of the asset?

Asset recovery
Depreciation recovery
After-tax recovery
Period recovery

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Engineering Economics
Earnings per share is the most important ratio for

Company's management
All of these
Share holders
Banks

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

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

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