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Engineering Economics

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

Price-earnings ratio
Current ratio
Gross margin
Profit margin ratio

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

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

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Engineering Economics
What is defined as the certificate of indebtedness of corporation usually for a period not less than 10 years and guaranteed by a mortgage on certain assets of a corporation?

Bond
T-bills
Promissory note
Stock

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Engineering Economics
If there are many sellers and few buyers, the market situation is _________ .

Monopoly
Oligopsony
Oligopoly
Duopsony

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Engineering Economics
What is defined as the reduction of the value of certain natural resources such as mines, oil, timber, quarries, etc. due to the gradual extraction of its contents?

Depletion
Depreciation
Inflation
Deflation

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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?

0.04
0.034
0.03
0.037

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