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Engineering Economics

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

Profit margin ratio
Price-earnings ratio
Current ratio
Gross margin

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Engineering Economics
If interest is paid more than once in a year, ‘i’ is the rate of interest per year, ‘n’ is the number of periods in years and ‘m’ is a number of periods per years, compound amount factor (CAF) is:

(1 + i/m)n
(1 + i/n)m
(1 + i/m)1/n
(1 + i/n)1/m

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Engineering Economics
What refers to the market situation in which any given product is supplied by a very large number of vendors and there is no restriction against additional vendors from entering the market?

Oligopoly
Oligopsony
Monopoly
Perfect competition

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Engineering Economics
The construction estimate of a project is used by:

The owner of the facility
The consulting architect/engineer
All of these
The contractor of the project

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Engineering Economics
What is defined as a financial security note issued by business or corporation and by the government as a means of borrowing long-term fund?

Bond
Securities
T-bills
Bank notes

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Engineering Economics
The depletion allowance method of computing depletion is commonly known as ______.

Factor method
Percentage method
Sinking fund method
Unit method

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