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

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

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Engineering Economics
What is the feature of some bonds whereby the issuer can redeem it before it matures?

Return clause
Callability
Call class
Recall clause

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Engineering Economics
ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method.

8 years
7 eyars
10 years
9 years

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Engineering Economics
Capitalized cost of a project is also known as ______.

Life cost
Project cost
Life cycle cost
Infinite cost

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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 222.67
P 231.56
P 212.90
P 236.20

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