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Engineering Economics

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

Premium annuities
Future annuities
Income annuities
All of these

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Engineering Economics
What represents the share of participation in business organizations?

Stock
Franchise
Partnership
Corporation

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Engineering Economics
The common ratio is the ratio of:

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

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Engineering Economics
Miss Evilla borrowed money from a bank. She receives from the bank P1,340.00 and promised to pay P1,500.00 at the end of 9 months. Determine the corresponding discount rate or often referred to as the “banker’s discount”.

0.1346
0.1332
0.1373
0.1315

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Engineering Economics
Aside from many sellers and many buyers, which one is a characteristic of perfect competition?

Homogeneous product
Perfect information and absence of all economic friction
Free market entry and exit
All of these

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

Rate of interest
Simple interest
Principal
Interest

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