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Engineering Economics

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

Call class
Return clause
Callability
Recall clause

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Engineering Economics
Capitalized cost of any structure or property is computed by which formula?

Annual cost – interest of first cost
First cost + cost of perpetual maintenance
First cost + interest of first cost
First cost + salvage value

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Engineering Economics
What is defined as the current assets minus inventories and prepaid expenses?

Quick ratio
Profit margin ratio
Price-earnings ratio
Return of investment ratio

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Engineering Economics
What is used to record historical financial transactions?

Ledger system
Bookkeeping system
General journal system
Balance check

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Engineering Economics
What rate of interest compounded annually is the same as the rate of interest of 8% compounded quarterly?

0.0807
0.0816
0.0812
0.0824

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Engineering Economics
If ‘S’ is the future capital accumulated in ‘n’ years at the rate of interest ‘I’ per annum, then present worth is:

None of these
S (1 + i)n
S (1 + i)1/n
S/(1 + i)n

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