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Engineering Economics

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

Leverage
Insolvency
Liquidity
Solvency

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Engineering Economics
A investor wishes to earn 7% on his capital after payment of taxes. If the income from an available investment will be taxed at an average rate of 42%, what minimum rate of return, before payment of taxes, must the investment offer to be justified?

0.1267
0.1234
0.1287
0.1207

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Engineering Economics
A feasibility study shows that a fixed capital investment of P10,000,000 is required for a proposed construction firm and an estimated working capital of P2,000,000. Annual depreciation is estimated to be10% of the fixed capital investment. Determine the rate of return on the total investment if the annual profit is P3,500,000.

28.33 %
30.78 %
29.17 %
30.12 %

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Engineering Economics
Lands, buildings, plants and machineries are example of what type of asset?

Current asset
Intangible asset
Trade investment asset
Fixed asset

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Engineering Economics
The true value of interest rate computed by equations for compound interest for a 1 year period is known as ______.

Economic return
Nominal interest
Expected return
Effective interest

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Engineering Economics
The depletion allowance method of computing depletion is commonly known as ______.

Factor method
Percentage method
Unit method
Sinking fund method

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