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Engineering Economics

Engineering Economics
The financial health of the company is measured in terms of:

Solvency
Relative risk
Liquidity
All of these

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Engineering Economics
What is defined as the investment of loan or principal which is based not only on the original amount of the loan or principal but the amount of loaned or principal plus the previous accumulated interest?

Simple interest
Nominal rate of interest
Compound interest
Effective rate of interest

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Engineering Economics
What type of bond is issued jointly by two or more corporations?

Mortgage bond
Tie-up bond
Trust bond
Joint bond

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Engineering Economics
If ‘a’ is the base amount expenditure, ‘b’ is the increase in the operation cost each year over a period of’ 'n’ years, the total cost of maintenance is:

a + (n + 1) b
a + (n - 1) b
a × (n - 1) b
a - (n - 1) b

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Engineering Economics
Pick up the ratio which gives us sufficient information by which to judge the financial condition and performance of the firm, from the following:

Activity ratio
Liquidity ratio
None of these
Financial leverage ratio

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Engineering Economics
The owner of the construction company makes use of the estimate:

To assist in financial arrangements
All of these
To determine the capital investment costs
To determine economic feasibility of the project

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