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Engineering Economics

Engineering Economics
What is the feature of some bonds whereby the issuer can redeem it before it matures?

Return clause
Recall clause
Call class
Callability

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Engineering Economics
What is the main reason why the sinking fund method of computing depreciation is seldom used in the industry?

The initial deprecation is high
Rate of interest cannot be exactly determined
The initial depreciation is low
Unstable economy

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Engineering Economics
Mr. Jun Ramos was granted a loan of P20,000 by his employer Excel First Review and Training Center, Inc. with an interest of 6% for 180 days on the principal collected in advance. The corporation would accept a promissory note for P20,000 non-interest for 180 days. If discounted at once, find the proceeds of the note.

P18,000
P19,000
P18,900
P19,100

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Engineering Economics
A loan for P50,000 is to be paid in 3 years at the amount of P65,000. What is the effective rate of money?

0.0941
0.0931
0.0901
0.0914

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Engineering Economics
Pick up the ratio which gives us sufficient information by which to judge the financial condition and performance of the firm, from the following:

Activity ratio
Financial leverage ratio
None of these
Liquidity ratio

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Engineering Economics
The exact simple interest of P5,000 invested from June 21, 1995 to December 25, 1995 is P100. What is the rate of interest?

0.0395
0.039
0.0392
0.0398

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