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Engineering Economics

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

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

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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.

5050000
5010000
5000000
5025000

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Engineering Economics
What is normally used to compare alternatives that accomplish the same purpose but have unequal lives?

Capitalized cost method
Annual cost method
Present worth method
MARR

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Engineering Economics
A manufacturing firm maintains one product assembly line to produce signal generators. Weekly demand for the generators is 35 units. The line operates for 7 hours per day, 5 days per week. What is the maximum production time per unit in hours required of the line to meet the demand?

1.0 hour per unit
1.6 hours per unit
1.2 hours per unit
1.4 hours per unit

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Engineering Economics
The person desires to pay off the amount in 10 equal annual instalments. The amount of each installment is:

None of these
Rs. 7738
Rs. 5638
Rs. 6638

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Engineering Economics
Capitalized cost of any structure or property is computed by which formula?

First cost + salvage value
Annual cost – interest of first cost
First cost + cost of perpetual maintenance
First cost + interest of first cost

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