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Engineering Economics

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

Price-earnings ratio
Gross margin
Current ratio
Profit margin ratio

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Engineering Economics
A manufacturing firm maintains one product assembly line to produce signal generators. Weekly demand for the generators is 35 units. The line operates for 7 hours per day, 5 days per week. What is the maximum production time per unit in hours required of the line to meet the demand?

1.4 hours per unit
1.2 hours per unit
1.6 hours per unit
1.0 hour per unit

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Engineering Economics
The functional depreciation is sometimes called ______.

Failure depreciation
Life depreciation
Demand depreciation
Adolescence

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Engineering Economics
A P 1,000,000 issue of 3%, 15-year bond was sold at 95%. What is the rate of interest of this investment?

0.037
0.04
0.03
0.034

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Engineering Economics
What is the effective rate corresponding to 18% compounded daily? Take 1 year is equal to 360 days.

0.1961
0.1944
0.1972
0.1931

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Engineering Economics
Return on investment ratio is the ratio of the:

Net income to owner’s equity
Cost of goods sold to average cost of inventory at hand
Net credit sales to average net receivable
Market price per share to earnings per share

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