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Engineering Economics

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

Profit margin ratio
Price-earnings ratio
Gross margin
Current ratio

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Engineering Economics
The deliberate lowering of the price of a nation’s currency in terms of the accepted standard (Gold, American dollar or the British pound) is known as ______.

Currency devaluation
Currency float
Currency appreciation
Currency depreciation

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Engineering Economics
What type of depreciation is due to the reduction of the physical ability of an equipment or asset to produce results?

Design depreciation
Physical depreciation
Functional depreciation
Demand depreciation

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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?

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

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Engineering Economics
A machine costs of P 8,000 and an estimated life of 10 years with a salvage value of P 500. What is its book value after 8 years using straight line method?

P 2,200.00
P 2,000.00
P 2,100.00
P 2,300.00

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Engineering Economics
What refers to the goods and services that are desired by human and will be acquired only after all the needs have been satisfied?

Necessity
Consumer products
Luxury
Producer products

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