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Engineering Economics

Engineering Economics
What is the effective rate corresponding to 18% compounded daily? Take 1 year is equal to 360 days.

0.1931
0.1944
0.1972
0.1961

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Engineering Economics
A investor wishes to earn 7% on his capital after payment of taxes. If the income from an available investment will be taxed at an average rate of 42%, what minimum rate of return, before payment of taxes, must the investment offer to be justified?

0.1234
0.1287
0.1267
0.1207

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Engineering Economics
Gross margin is the ratio of the gross profit to ______.

Net sale
Inventory turnover
Owner’s equity
Quick assets

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Engineering Economics
A factory operator bought a diesel generator set for P 10,000.00 and agreed to pay the dealer uniform sum at the end of each year for 5 years at 8% interest compounded annually, that the final payment will cancel the debt for principal and interest. What is the annual payment?

P 2,504.57
P 2,500.57
P 2,544.45
P 2,540.56

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

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

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Engineering Economics
A mathematical expression also known as the present value of annuity of one is called ______.

Sinking fund factor
Load factor
Present worth factor
Demand factor

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