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Engineering Economics

Engineering Economics
What is an index of short-term paying ability?

Price-earnings ratio
Profit margin ratio
Gross margin
Current ratio

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Engineering Economics
A P 1,000,000 issue of 3%, 15-year bond was sold at 95%. What is the rate of interest of this investment?

0.037
0.04
0.034
0.03

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Engineering Economics
In what method of computing depreciation where it assumes that the loss in value is directly proportional to the age of the equipment or asset?

Straight line method
Declining balance method
Sum-of-year digit method
Sinking fund method

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

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

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Engineering Economics
A man invested P110,000 for 31 days. The net interest after deducting 20% withholding tax is P890.36. Find the rate of return annually.

0.1195
0.1232
0.1175
0.115

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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?

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

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