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Engineering Economics

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

Callability
Call class
Return clause
Recall clause

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Engineering Economics
A college freshman borrowed P2,000 from a bank for his tuition fee and promised to pay the amount for one year. He received only the amount of P1,920 after the bank collected the advance interest of P80.00. What was the rate of discount?

0.0367
0.0415
0.0425
0.04

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Engineering Economics
What refers to an imaginary cost representing what will not be received if a particular strategy is rejected?

Opportunity cost
Horizon cost
Null cost
Ghost cost

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

Owner’s equity
Quick assets
Net sale
Inventory turnover

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Engineering Economics
As applied to capitalized asset, the distribution of the initial cost by a periodic changes to operation as in depreciation or the reduction of a debt by either periodic or irregular prearranged programs is called ______.

Amortization
Annuity
Annuity factor
Capital recovery

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Engineering Economics
What refers to the present worth of the probable future net earnings?

Going concern value
Total fair value
Earning value
Total market value

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