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Engineering Economics

Engineering Economics
The price at which the callable bond will be redeemed from the bondholder is called ______.

Face value
Call value
Par value
Redemption value

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

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

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Engineering Economics
What is defined as the reduction or fall of the value of an asset due to constant use and passage of time?

Depletion
Inflation
Deflation
Depreciation

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

Simple interest
Principal
Interest
Rate of interest

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Engineering Economics
The ratio of current assets to current liabilities is known as

Liquidity ratio
Debts ratio
Current ratio
Acid-Test (or Quick) ratio

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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.

0.3012
0.2917
0.3078
0.2833

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