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Engineering Economics

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

Relative risk
Solvency
Liquidity
All of these

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Engineering Economics
ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method.

8 years
7 eyars
10 years
9 years

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Engineering Economics
What refers to an imaginary cost representing what will not be received if a particular strategy is rejected?

Null cost
Opportunity cost
Ghost cost
Horizon cost

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Engineering Economics
What is the type of annuity where the payments are made at the end of each period starting from the first period?

Ordinary annuity
Perpetuity
Deferred annuity
Annuity due

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Engineering Economics
Pick up the ratio which gives us sufficient information by which to judge the financial condition and performance of the firm, from the following:

Activity ratio
Financial leverage ratio
Liquidity ratio
None of these

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Engineering Economics
Pick up the main purpose of project cost control from the following:

To provide a feed back to the estimator
All of these
To promote cost consciousness
To signal immediate warning of uneconomic operations

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