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Engineering Economics

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

Recall clause
Return clause
Callability
Call class

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Engineering Economics
Return on investment ratio is the ratio of the:

Net income to owner’s equity
Net credit sales to average net receivable
Market price per share to earnings per share
Cost of goods sold to average cost of inventory at hand

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Engineering Economics
What is normally used to compare alternatives that accomplish the same purpose but have unequal lives?

Annual cost method
Present worth method
MARR
Capitalized cost method

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Engineering Economics
What is the present worth of a P500 annuity starting at the end of the third year and continuing to the end of the fourth year, if the annual interest rate is 10 %?

P 717.17
P 731.17
P 727.17
P 714.71

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Engineering Economics
Pick up the method used for project evaluation and selection in capital budgeting from the following:

All listed here
Internal ratio of return
Net present worth
Payback period

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Engineering Economics
What method is often used in municipal project evaluations where benefits and costs accrue to different segments of the community?

Annual cost method
Rate of return method
Benefit-cost ratio
EUAC

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