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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
What refers to the value of an asset which a disinterested third party, different from the buyer and seller, will determine in order to establish a price acceptable to both parties?

Market value
Franchise value
Fair value
Book value

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Engineering Economics
Present worth Annuity (PWA) is generally known as

Premium annuities
Income annuities
Future annuities
All of these

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Engineering Economics
In what method of computing depreciation where it assumes that a sinking fund is established in which funds will accumulate for replacement purposes?

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

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Engineering Economics
Duopsony is a market situation where there is/are:

Few sellers and many buyers
Few sellers and few buyers
Many sellers and few buyers
One seller and few buyers

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Engineering Economics
If ‘P’ is principal amount, ‘I’ is the rate of interest per annum and ‘n’ is the number of periods in years, the compound amount factor (CAF) is:

None of these
√(n + i)
(1 + i)(1/2n)
(1 + i)n

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