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ENGINEERING ECONOMICS

Engineering Economics
The common ratio is the ratio of:

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

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Engineering Economics
The deliberate lowering of the price of a nation’s currency in terms of the accepted standard (Gold, American dollar or the British pound) is known as ______.

Currency appreciation
Currency depreciation
Currency float
Currency devaluation

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Engineering Economics
The declining balance method is also known as ______.

Modified sinking fund method
Modified SYD method
Double percentage method
Constant percentage method

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Engineering Economics
The true value of interest rate computed by equations for compound interest for a 1 year period is known as ______.

Nominal interest
Economic return
Expected return
Effective interest

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

Infinite cost
Life cycle cost
Project cost
Life cost

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