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Engineering Economics

Engineering Economics
Which of the following is an example of intangible asset?

Investment in subsidiary companies
Patents
Cash
Furnitures

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Engineering Economics
What is defined as the current assets minus inventories and prepaid expenses?

Return of investment ratio
Profit margin ratio
Quick ratio
Price-earnings ratio

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Engineering Economics
As applied to capitalized asset, the distribution of the initial cost by a periodic changes to operation as in depreciation or the reduction of a debt by either periodic or irregular prearranged programs is called ______.

Capital recovery
Annuity factor
Amortization
Annuity

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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 ______.

Economic return
Effective interest
Nominal interest
Expected return

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Engineering Economics
A student plans to deposit P1,500 in the bank now and another P3,000 for the next 2 years. If he plans to withdraw P5,000 three years from after his last deposit for the purpose of buying shoes, what will be the amount of money left in the bank after one year of his withdrawal? Effective annual interest rate is 10%.

P1,945.64
P1,459.64
P1,549.64
P1,345.98

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Engineering Economics
The ability to convert assets to cash quickly is known as ______.

Insolvency
Leverage
Liquidity
Solvency

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