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Engineering Economics

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

Current ratio
Gross margin
Profit margin ratio
Price-earnings ratio

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Engineering Economics
In what method of computing depreciation where it assumes that the loss in value is directly proportional to the age of the equipment or asset?

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

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Engineering Economics
In year zero, you invest P 10,000.00 in a 15% security for 5 years. During that time, the average annual inflation is 6%. How much in terms of year zero pesos will be in the account at maturity?

P 16,892.34
P 18,289.05
P 15,030.03
P 20,113.57

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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 ______.

Fixed cost
In-place value
Material cost
First cost

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Engineering Economics
The construction manager uses the estimate of the project

To develop bids on the project
To control the project during its construction
To tell the owner of the project to take his/her financial decision
All of these

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Engineering Economics
“Under conditions of perfect competition, the price at which any given product will be supplied and purchased is the price that will result in the supply and the demand being equal.” This statement is known as the:

Law of diminishing return
Law of supply and demand
Law of demand
Law of supply

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