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Engineering Economics

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

Current ratio
Price-earnings ratio
Gross margin
Profit margin ratio

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Engineering Economics
What refers to the interest rate at which the present work of the cash flow on a project is zero of the interest earned by an investment?

Rate of return
Return of investment
Economic return
Yield

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Engineering Economics
What is defined as the investment of loan or principal which is based not only on the original amount of the loan or principal but the amount of loaned or principal plus the previous accumulated interest?

Compound interest
Effective rate of interest
Nominal rate of interest
Simple interest

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Engineering Economics
What do you call the after-tax present worth of all depreciation effects over the depreciation period of the asset?

Period recovery
Asset recovery
Depreciation recovery
After-tax recovery

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Engineering Economics
A firm borrows P2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due plus P2,000 more for 2 years at 8%. What is the lump sum due?

P 3,260.34
P 3,250.34
P 3,270.34
P 3,280.34

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Engineering Economics
A loan of P5,000 is made for a period of 15 months, at a simple interest rate of 15%, what future amount is due at the end of the loan period?

5937.5
5712.4
5690.12
5873.2

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