Engineering Economics MCQs

Question 1

A young engineer borrowed P 10,000 at 12% interest and paid P 2,000 per annum for the last 4 years. What does he have to pay at the end of the fifth year in order to pay off his loan?

Accepted Answer

P 6,922.93

Answer

P 6,999.39

Answer

P 6,292.93

Answer

P 6,222.39

Question 2

What is a government bond which has an indefinite life rather than a specific maturity?

Accepted Answer

Consol

Answer

Coupon

Answer

T-bill

Answer

Debenture

Question 3

Earnings per share is the most important ratio for

Accepted Answer

All of these

Answer

Share holders

Answer

Banks

Answer

Company's management

Question 4

How long will it take money to double itself if invested at 5% compounded annually?

Accepted Answer

14.2 years

Answer

13.7 years

Answer

14.7 years

Answer

15.3 years

Question 5

What is the present worth of a year annuity paying P 3,000.00 at the end of each year, with interest at 8% compounded annually?

Accepted Answer

P 7,731.29

Answer

P 7,654.04

Answer

P 7,420.89

Answer

P 7,590.12

Question 6

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

Accepted Answer

Quick ratio

Answer

Profit margin ratio

Answer

Price-earnings ratio

Answer

Return of investment ratio

Question 7

If ‘S’ is the future capital accumulated in ‘n’ years at the rate of interest ‘i’ per annum, then present worth is:

Accepted Answer

$$\frac{{	ext{S}}}{{{{\left( {1 + {	ext{i}}} ight)}^{	ext{n}}}}}$$

Answer

$${	ext{S}}{\left( {1 + {	ext{i}}} ight)^{	ext{n}}}$$

Answer

$${	ext{S}}{\left( {1 + {	ext{i}}} ight)^{\frac{1}{{	ext{n}}}}}$$

Answer

None of these

Question 8

Gross margin is the ratio of the gross profit to ______.

Accepted Answer

Net sale

Answer

Owner’s equity

Answer

Inventory turnover

Answer

Quick assets

Question 9

Probabilistic estimating of a construction project includes:

Accepted Answer

All of these

Answer

Labour

Answer

Productivity

Answer

Wage scale