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Engineering Economics

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

Gross margin
Profit margin ratio
Current ratio
Price-earnings ratio

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Engineering Economics
The owner of the construction company makes use of the estimate:

To determine economic feasibility of the project
To determine the capital investment costs
All of these
To assist in financial arrangements

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Engineering Economics
What is another term for “unit method” for computing depletion?

Sinking fund method
Initial cost method
Factor method
Percentage method

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Engineering Economics
What refers to the market situation in which any given product is supplied by a very large number of vendors and there is no restriction against additional vendors from entering the market?

Perfect competition
Monopoly
Oligopoly
Oligopsony

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Engineering Economics
What refers to the cumulative effect of elapsed time on the money value of an event, based on the earning power of equivalent invested funds capital should or will earn?

Yield
Present worth factor
Interest rate
Time value of money

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Engineering Economics
The flow back of profit plus depreciation form a given project is called ______.

Economic return
Cash flow
Capital recovery
Earning value

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