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Engineering Economics

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

Manufacturer
Buyer or consumer
Seller
Producer

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Engineering Economics
Annuities involve:

A series of payments
All of these
Payment at equal time intervals
All payments of equal amount

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Engineering Economics
What is another term for “acid-test ratio”?

Profit margin ratio
Price-earnings ratio
Current ratio
Quick ratio

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Engineering Economics
As applied to capitalized asset, the distribution of the initial cost by a periodic changes to operation as in depreciation or the reduction of a debt by either periodic or irregular prearranged programs is called ______.

Amortization
Annuity
Capital recovery
Annuity factor

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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.

7 eyars
8 years
9 years
10 years

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Engineering Economics
In year zero, you invest P 10,000.00 in a 15% security for 5 years. During that time, the average annual inflation is 6%. How much in terms of year zero pesos will be in the account at maturity?

P 18,289.05
P 16,892.34
P 20,113.57
P 15,030.03

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