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Engineering Economics

Engineering Economics
Which one of the following is included in financial ratios of the firm?

Turnover ratio
Liquidity ratio
Profitability ratio
All of these

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Engineering Economics
______ is the element of value which a business has earned through the favorable consideration and patronage of its costumers arising from its well known and well conducted policies and operations.

Big income
Status company
Goodwill
Known owners

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Engineering Economics
What refers to the ratio of the interest payment to the principal for a given unit of time and usually expressed as a percentage of the principal?

Interest rate
Yield
Rate of return
Return of investment

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Engineering Economics
In what method of computing depreciation where it assumes that the loss in value is directly proportional to the age of the equipment or asset?

Straight line method
Sinking fund method
Declining balance method
Sum-of-year digit method

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Engineering Economics
What is defined as any tangible economic activity that contributes directly or indirectly to the satisfaction of human want?

Services
Commodities
Goods
Goods or commodities

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Engineering Economics
A investor wishes to earn 7% on his capital after payment of taxes. If the income from an available investment will be taxed at an average rate of 42%, what minimum rate of return, before payment of taxes, must the investment offer to be justified?

0.1287
0.1207
0.1234
0.1267

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