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Engineering Economics

Engineering Economics
The financial health of the company is measured in terms of:

Solvency
Liquidity
All of these
Relative risk

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Engineering Economics
What is defined as any tangible economic activity that contributes directly or indirectly to the satisfaction of human want?

Commodities
Goods
Goods or commodities
Services

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Engineering Economics
If ‘P’ is principal amount, ‘I’ is the rate of interest per annum and ‘n’ is the number of periods in years, the compound amount factor (CAF) is:

(1 + i)n
None of these
(1 + i)(1/2n)
√(n + i)

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Engineering Economics
A mathematical expression also known as the present value of annuity of one is called ______.

Load factor
Demand factor
Sinking fund factor
Present worth factor

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Engineering Economics
In what method of computing depreciation where it assumes that the annual cost of depreciation is a fixed percentage of the book value at the beginning of the year?

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

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Engineering Economics
A P 1, 000, 6% bond pays dividend semiannually and will be redeemed at 110% on June 21, 204. It is bought on June 21, 2001 to yield 4% interest. Find the price of the bond.

P 1,144.81
P 1,133.78
P 1,122.70
P 1,155.06

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