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Engineering Economics

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

Call value
Redemption value
Par value
Face value

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Engineering Economics
What is considered as the basic consuming or demanding unit of a commodity?

Buyer or consumer
Seller
Manufacturer
Producer

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Engineering Economics
The ability to convert assets to cash quickly is known as ______.

Solvency
Leverage
Insolvency
Liquidity

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Engineering Economics
What is defined as the investment of loan or principal which is based not only on the original amount of the loan or principal but the amount of loaned or principal plus the previous accumulated interest?

Simple interest
Compound interest
Effective rate of interest
Nominal rate of interest

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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
9 years
7 eyars
10 years

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Engineering Economics
What do you call the after-tax present worth of all depreciation effects over the depreciation period of the asset?

Depreciation recovery
After-tax recovery
Asset recovery
Period recovery

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