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Engineering Economics

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

Leverage
Insolvency
Solvency
Liquidity

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Engineering Economics
The difference between the present and future worth of money at some time in the future is called ______.

Inflation
Depletion
Discount
Deduction

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Engineering Economics
A sum of P1,000 is invested now and left for eight years, at which time the principal is withdrawn. The interest has accrued is left for another eight years. If the effective annual interest rate is 5%, what will be the withdrawal amount at the end of the 16th year?

P705.42
P702.15
P700.12
P693.12

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Engineering Economics
In what method of computing depreciation where it assumes that the loss in value is directly proportional to the age of the equipment or asset?

Sum-of-year digit method
Straight line method
Sinking fund method
Declining balance method

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Engineering Economics
An asset is purchased for P 9,000.00. Its estimated economic life is 10 years after which it will be sold for P 1,000.00. Find the depreciation in the first three years using sum-of-years digit method

P 3,729.27
P 3,927.27
P 3,279.27
P 3,792.72

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Engineering Economics
A type of bond to which are attached coupons indicating the interest due and the date when such interest is to be paid is called ______.

Mortgage bond
Coupon bond
Registered bond
Collateral trust bond

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