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Engineering Economics

Engineering Economics
Capitalized cost of a project is also known as ______.

Life cost
Project cost
Life cycle cost
Infinite cost

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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.

28.33 %
30.12 %
30.78 %
29.17 %

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

Current ratio
Gross margin
Profit margin ratio
Price-earnings ratio

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Engineering Economics
Mandarin Bank advertises 9.5% account that yields 9.84% annually. Find how often the interest is compounded.

Monthly
Annually
Quarterly
Bimonthly

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Engineering Economics
Present worth Annuity (PWA) is generally known as

Premium annuities
All of these
Income annuities
Future annuities

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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?

Return of investment
Interest rate
Rate of return
Yield

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