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Engineering Economics

Engineering Economics
The price at which the callable bond will be redeemed from the bondholder is called ______.

Face value
Redemption value
Par value
Call value

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Engineering Economics
What is an index of short-term paying ability?

Price-earnings ratio
Profit margin ratio
Current ratio
Gross margin

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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 ______.

Effective interest
Economic return
Nominal interest
Expected return

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Engineering Economics
What is a stock of a product which is held by a trade body or government as a means of regulating the price of that product?

Stock pile
Withheld stock
Buffer stock
Hoard stock

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Engineering Economics
What is the basic accounting equation?

Liability = assets + owners’ equity
Assets = liability + owner’s equity
Owner’s equity = assets + liability
Owner’s equity = liability – assets

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Engineering Economics
A man loans P 187,400 from a bank with interest at 5% compounded annually. He agrees to pay his obligations by paying 8 equal annual payments, the first being due at the end of 10 years. Find the annual payments.

P 43,489.47
P 43,263.91
P 43,600.10
P 43,763.20

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