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Engineering Economics

Engineering Economics
What is considered as the basic consuming or demanding unit of a commodity?

Manufacturer
Producer
Buyer or consumer
Seller

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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?

0.03
0.034
0.04
0.037

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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
Return on investment ratio is the ratio of the:

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

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Engineering Economics
The depletion allowance method of computing depletion is commonly known as ______.

Percentage method
Factor method
Sinking fund method
Unit method

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Engineering Economics
Engr. Trinidad loans from a loan firm an amount of P100,000 with a rate of simple interest of 20% but the interest was deducted from the loan at the time the money was borrowed. If at the end of one year, she has to pay the full amount of P100,000, what is the actual rate of interest?

0.258
0.247
0.235
0.25

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