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Engineering Economics

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

Profit margin ratio
Price-earnings ratio
Current ratio
Gross margin

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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.

30.78 %
29.17 %
28.33 %
30.12 %

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Engineering Economics
A VOM has a selling price of P 400. If its selling price is expected to decline at a rate of 10% per annum due to obsolescence, what will be its selling price after 5 years?

P 231.56
P 222.67
P 236.20
P 212.90

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Engineering Economics
What is the opposite of perfect competition?

Oligopsony
Monopoly
Oligopoly
Monopsony

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Engineering Economics
The first cost to be incurred if the piece of equipment now in place had been bought for a second hand dealer or some other business is called ______.

In-place value
First cost
Material cost
Fixed cost

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Engineering Economics
A manufacturer produces certain items at a labor cost of P 115 each, material cost of P 76 each and variable cost of P 2.32 each. If the item has a unit price of P 600, how many units must be manufactured each month for the manufacturer to break even if the monthly overhead is P428,000

1033
1037
1043
1053

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