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Engineering Economics

Engineering Economics
What is the market situation exist when there are many buyers and many sellers?

Monopoly
Oligopsony
Oligopoly
Perfect competition

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Engineering Economics
What is the basic accounting equation?

Liability = assets + owners’ equity
Owner’s equity = liability – assets
Owner’s equity = assets + liability
Assets = liability + owner’s equity

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Engineering Economics
The deliberate lowering of the price of a nation’s currency in terms of the accepted standard (Gold, American dollar or the British pound) is known as ______.

Currency devaluation
Currency appreciation
Currency float
Currency depreciation

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Engineering Economics
A feasibility study shows that a fixed capital investment of P10,000,000 is required for a proposed construction firm and an estimated working capital of P2,000,000. Annual depreciation is estimated to be10% of the fixed capital investment. Determine the rate of return on the total investment if the annual profit is P3,500,000.

29.17 %
30.78 %
30.12 %
28.33 %

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Engineering Economics
What is an index of short-term paying ability?

Profit margin ratio
Current ratio
Gross margin
Price-earnings ratio

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Engineering Economics
ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method.

9 years
8 years
7 eyars
10 years

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