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Engineering Economics

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

Gross margin
Current ratio
Price-earnings ratio
Profit margin ratio

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Engineering Economics
The Saudi Arabian Oil Refinery developed an oil well which is estimated to contain 5,000,000 barrels of oil at an initial cost of $ 50,000,000. What is the depletion charge during the year where it produces half million barrels of oil? Use Unit or Factor method in computing depletion.

5050000
5010000
5025000
5000000

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Engineering Economics
First Benchmark Publishing’s gross margin is 50% of sales. The operating costs of the publishing are estimated at 15% of sales. If the company is within the 40% tax bracket, determine the percent of sales is their profit after taxes?

0.18
0.2
0.19
0.21

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Engineering Economics
Which of these gives the lowest effective rate of interest?

11.60 % compounded annually
12.20 % compounded annually
11.90 % compounded annually
12.35 % compounded annually

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Engineering Economics
A feasibility study shows that a fixed capital investment of P10,000,000 is required for a proposed construction firm and an estimated working capital of P2,000,000. Annual depreciation is estimated to be10% of the fixed capital investment. Determine the rate of return on the total investment if the annual profit is P3,500,000.

30.12 %
29.17 %
28.33 %
30.78 %

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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?

Depletion
Depreciation
Deflation
Inflation

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