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Engineering Economics

Engineering Economics
The ratio of current assets to current liabilities is known as

Acid-Test (or Quick) ratio
Liquidity ratio
Current ratio
Debts ratio

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Engineering Economics
A machine costs of P 8,000 and an estimated life of 10 years with a salvage value of P 500. What is its book value after 8 years using straight line method?

P 2,100.00
P 2,000.00
P 2,200.00
P 2,300.00

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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?

Demand depreciation
Physical depreciation
Design depreciation
Functional depreciation

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Engineering Economics
The Saudi Arabian Oil Refinery developed an oil well which is estimated to contain 5,000,000 barrels of oil at an initial cost of $ 50,000,000. What is the depletion charge during the year where it produces half million barrels of oil? Use Unit or Factor method in computing depletion.

$ 5,010,000.00
$ 5,000,000.00
$ 5,025,000.00
$ 5,050,000.00

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Engineering Economics
A feasibility study shows that a fixed capital investment of P10,000,000 is required for a proposed construction firm and an estimated working capital of P2,000,000. Annual depreciation is estimated to be10% of the fixed capital investment. Determine the rate of return on the total investment if the annual profit is P3,500,000.

29.17 %
30.12 %
28.33 %
30.78 %

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Engineering Economics
Oligopoly exists when there is/are:

Few sellers and few buyers
Few sellers and many buyers
One seller and few buyers
Many sellers and few buyers

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