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Engineering Economics

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

Liquidity
Relative risk
Solvency
All of these

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Engineering Economics
The sunk costs include:

An unrecovered balance
An invested capital that cannot be retrieved
All of these
A past expenditure

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Engineering Economics
A factory operator bought a diesel generator set for P 10,000.00 and agreed to pay the dealer uniform sum at the end of each year for 5 years at 8% interest compounded annually, that the final payment will cancel the debt for principal and interest. What is the annual payment?

P 2,500.57
P 2,544.45
P 2,504.57
P 2,540.56

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

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Engineering Economics
What type of depreciation is due to the reduction of the physical ability of an equipment or asset to produce results?

Physical depreciation
Design depreciation
Demand depreciation
Functional depreciation

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Engineering Economics
What is the market situation exist when there are many buyers and many sellers?

Monopoly
Oligopsony
Oligopoly
Perfect competition

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