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Engineering Economics

Engineering Economics
What market situation exists where there are few sellers and few buyers?

Oligopsony
Oligopoly
Bilateral oligopoly
Bilateral Oligopsony

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Engineering Economics
What refers to the amount of money paid for the use of borrowed capital?

Simple interest
Rate of interest
Principal
Interest

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

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Engineering Economics
The common ratio is the ratio of:

Gross profit to net sales
Net credit sales to average net receivable
Current assets to current liabilities
Net income to owner’s equity

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Engineering Economics
The annuity which refers to a debt payment for recovering the initial amount or capital in equal periodical payments, is known as;

Sinking fund annuity
Compound annuity
Present Worth Annuity
Capital recovery annuity

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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.

0.2917
0.3012
0.2833
0.3078

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