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Engineering Economics

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

Price-earnings ratio
Gross margin
Profit margin ratio
Current ratio

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Engineering Economics
In what method of computing depreciation where it assumes that the annual cost of depreciation is a fixed percentage of the book value at the beginning of the year?

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

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Engineering Economics
What is considered as the standard unit which forms the basis of a country’s domestic money supply?

Cash or check
Monetary unit
Foreign exchange
Currency

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Engineering Economics
A factory operator bought a diesel generator set for P 10,000.00 and agreed to pay the dealer uniform sum at the end of each year for 5 years at 8% interest compounded annually, that the final payment will cancel the debt for principal and interest. What is the annual payment?

P 2,544.45
P 2,540.56
P 2,500.57
P 2,504.57

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Engineering Economics
The person desires to pay off the amount in 10 equal annual instalments. The amount of each installment is:

Rs. 6638
Rs. 5638
None of these
Rs. 7738

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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?

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

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