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Engineering Economics

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

Rate of interest
Simple interest
Interest
Principal

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Engineering Economics
Mr. David deposits Rs 1200 now, Rs 800 two years from now and Rs 1000 five years from now. If the savings bank's rate of interest in 5%, he will receive an amount of Rs X, 10 years from now, where ‘X’ is

Rs. 4826
Rs. 4225
Rs. 4413
Rs. 3415

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Engineering Economics
What is the type of annuity where the first payment does not begin until some later date in the cash flow?

Deferred annuity
Ordinary annuity
Annuity due
Perpetuity

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Engineering Economics
What type of depreciation is due to the reduction in the demand for the function that the equipment or asset was designed to render?

Demand depreciation
Physical depreciation
Functional depreciation
Design depreciation

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Engineering Economics
What annuity is required over 12 years to equate with a future amount of P 20,000? Assume i= 6% annually.

P 1,205.74
P 1,185.54
P 1,290.34
P 1,107.34

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Engineering Economics
What is a measure of the average speed with which accounts receivable are collected?

Quick ratio
Current ratio
Receivable turnover
Acid test ratio

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