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Engineering Economics

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

Gross margin
Price-earnings ratio
Profit margin ratio
Current ratio

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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
Joint bond
Common bond
Debenture bond

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Engineering Economics
What is defined as the reduction or fall of the value of an asset due to constant use and passage of time?

Deflation
Depreciation
Inflation
Depletion

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Engineering Economics
A firm borrows P2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due plus P2,000 more for 2 years at 8%. What is the lump sum due?

P 3,250.34
P 3,280.34
P 3,260.34
P 3,270.34

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Engineering Economics
What refers to the residual value of a company’s assets after all outside liabilities (shareholders excluded) have been allowed for?

Par value
Return
Equity
Dividend

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Engineering Economics
What rate of interest compounded annually is the same as the rate of interest of 8% compounded quarterly?

0.0824
0.0807
0.0816
0.0812

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