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Engineering Economics

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

Gross margin
Current ratio
Profit margin ratio
Price-earnings ratio

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Engineering Economics
A college freshman borrowed P2,000 from a bank for his tuition fee and promised to pay the amount for one year. He received only the amount of P1,920 after the bank collected the advance interest of P80.00. What was the rate of discount?

0.0415
0.0425
0.04
0.0367

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Engineering Economics
A bond without any security behind them except a promise to pay by the issuing corporation is called ______.

Trust bond
Common bond
Joint bond
Debenture bond

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Engineering Economics
What is the type of annuity where the payments are made at the end of each period starting from the first period?

Annuity due
Ordinary annuity
Perpetuity
Deferred annuity

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Engineering Economics
What refers to the claim of anyone to ownership?

Assets
Liability
Equity
Proprietorship

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Engineering Economics
What method is often used in municipal project evaluations where benefits and costs accrue to different segments of the community?

Rate of return method
Benefit-cost ratio
EUAC
Annual cost method

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