Engineering Economics MCQs

What do you call a one-time credit against taxes?

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.

What is the type of annuity that does not have a fixed time span but continues indefinitely or forever?

The ratio of current assets to current liabilities is known as

Current assets less inventories divided by current liabilities is known as

A type of bond where the corporation pledges securities which it owns such as the stock or bonds of one of its subsidiaries.

What is a measure of the average speed with which accounts receivable are collected?

What is the change in cost per unit variable change called?

What refers to the saving which takes place because goods are not available for consumption rather than consumer really want to save?