Engineering Economics
Liquidity ratios are used:

To obtain much insight into the present cash solvency of the firm and the firm
To measure a firm’s ability to meet short-cut obligations
To compare short term obligations to short-term resources available to meet these obligations
All of these

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Engineering Economics
The institute of Electronics and Communications Engineers of the Philippines (IECEP) is planning to put up its own building. Two proposals being considered are:A. The construction of the building now to cost P 400,000B. The construction of a smaller building now to cost P300,000 and at the end of 5 years, an extension to be added to cost P 200,000.By how much is proposal B more economical than proposal A if interest rate is 20% and depreciation to be neglected?

P 19,624.49
P 19,122.15
P 19,518.03
P 19,423.69

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