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Engineering Economics

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

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

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Engineering Economics
Miss Evilla borrowed money from a bank. She receives from the bank P1,340.00 and promised to pay P1,500.00 at the end of 9 months. Determine the corresponding discount rate or often referred to as the “banker’s discount”.

0.1332
0.1346
0.1315
0.1373

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Engineering Economics
______ is the element of value which a business has earned through the favorable consideration and patronage of its costumers arising from its well known and well conducted policies and operations.

Known owners
Big income
Goodwill
Status company

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Engineering Economics
Which method is adopted to develop an approximate or conceptual estimate for perimeter works for buildings from the following?

Base unit method
Cost per function method
Cost per linear metre method
Cost per square metre method

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Engineering Economics
What is the type of annuity where the first payment does not begin until some later date in the cash flow?

Perpetuity
Ordinary annuity
Annuity due
Deferred annuity

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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
Effective rate of interest
Nominal rate of interest
Compound interest

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