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Engineering Economics

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

Price-earnings ratio
Profit margin ratio
Current ratio
Gross margin

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Engineering Economics
You borrow P3,500.00 for one year from a friend at an interest rate of 1.5% per month instead of taking a loan from a bank at a rate of 18% per year. How much lesser you will pay by borrowing the money from the bank?

P54.66
P44.55
P37.56
P 62.44

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Engineering Economics
If ‘a’ is the base amount expenditure, ‘b’ is the increase in the operation cost each year over a period of’ 'n’ years, the total cost of maintenance is:

a - (n - 1) b
a × (n - 1) b
a + (n - 1) b
a + (n + 1) b

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Engineering Economics
What refers to the present worth of the probable future net earnings?

Going concern value
Earning value
Total market value
Total fair value

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Engineering Economics
What is the basic accounting equation?

Owner’s equity = liability – assets
Liability = assets + owners’ equity
Assets = liability + owner’s equity
Owner’s equity = assets + liability

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Engineering Economics
A type of bond where the corporation pledges securities which it owns such as the stock or bonds of one of its subsidiaries.

Collateral trust bond
Joint bond
Mortgage bond
Security bond

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