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Engineering Economics

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

Current ratio
Gross margin
Price-earnings ratio
Profit margin ratio

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Engineering Economics
What is defined as any tangible economic activity that contributes directly or indirectly to the satisfaction of human want?

Goods
Goods or commodities
Commodities
Services

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Engineering Economics
What is the main reason why the sinking fund method of computing depreciation is seldom used in the industry?

Rate of interest cannot be exactly determined
The initial deprecation is high
Unstable economy
The initial depreciation is low

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Engineering Economics
A student plans to deposit P1,500 in the bank now and another P3,000 for the next 2 years. If he plans to withdraw P5,000 three years from after his last deposit for the purpose of buying shoes, what will be the amount of money left in the bank after one year of his withdrawal? Effective annual interest rate is 10%.

P1,945.64
P1,459.64
P1,549.64
P1,345.98

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Engineering Economics
What refers to the interest rate at which the present work of the cash flow on a project is zero of the interest earned by an investment?

Rate of return
Economic return
Return of investment
Yield

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Engineering Economics
The CRF (ep) is also known as: [CRF(EP) - 8% - 7], where

Neither (A) nor (B)
Money is borrowed for n = 7 years
Both (A) and (B)
8% is the rate of interest per year

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