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Engineering Economics

Engineering Economics
What is defined as the reduction or fall of the value of an asset due to constant use and passage of time?

Deflation
Inflation
Depreciation
Depletion

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Engineering Economics
What refers to the cost of borrowing money or the amount earned by a unit principal per unit time?

Rate of return
Yield rate
Economic return
Rate of interest

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Engineering Economics
Current assets less inventories divided by current liabilities is known as

Acid-Test (or Quick) ratio
Current ratio
Liquidity ratio
Debts ratio

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Engineering Economics
Mandarin Bank advertises 9.5% account that yields 9.84% annually. Find how often the interest is compounded.

Monthly
Bimonthly
Quarterly
Annually

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Engineering Economics
What is defined as a financial security note issued by business or corporation and by the government as a means of borrowing long-term fund?

Bank notes
T-bills
Securities
Bond

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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.

9 years
7 eyars
8 years
10 years

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