Engineering Economics
The financial analysis:

All of these
Helps a bank to know the financial position of the firm for granting a loan to the firm
Helps a share holder to compare the expected return on his investment in the firm against the expected return from other alternative investment
Helps to judge the success of the firm's financial plans

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Engineering Economics
It is the practice of almost all banks in the Philippines that when they grant a loan, the interest for one year is automatically deducted from the principal amount upon release of money to a borrower. Let us therefore assume that you applied for a loan with a bank and the P80,000 was approved at an interest rate of 14% of which P11,200 was deducted and you were given a check of P68,800. Since you have to pay the amount of P80,000 one year after, what then will be the effective interest rate?

0.1632
0.1602
0.1628
0.1647

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Engineering Economics
In a cash flow series:

Uniform gradient signifies that an income or disbursement changes by the same amount in each interest period
Either an increase or decrease in the amount of a cash flow is called the gradient
All of these
The gradient in the cash flow may be positive or negative

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