Engineering Economy Answer Key Docx

151. The stock holders of the corporation are only liable to the extent of their investments. 152. Corporation 153. Partnership 154. Common stock 155. Preferred stock 156. ividend 15!. "#$ity 15%. "#$ity 15&. Capital 16'. (tock 161. "conomic ret$rn 162. )ood*ill 163. Patents 164. +ixed asset 165. ,ate of ret$rn 166. -i#$id assets 16!. Cost of oods sold 16%. /ncremental cost 16&. 0ookkeepin system 1!'. -eder 1!1. o$rnal 1!2. )ross income 1!3. ($pervision cost 1!4. ,eceivable t$rnover 1!5. Prot marin ratio 1!6. Tax credit 1!!. ,$le of !2 1!%. Capital ain 1!&. Capital loss 1%'. Certicate of deposit

1%1. C$rrency depreciation 1%2. C$rrency deval$ation 1%3. +orced savin 1%4. Cash o* 1%5. mortiation 1%6. +irst cost  cost of perpet$al maintenance 1%!. "7ective interest 1%%. 8et income to o*ner9s e#$ity 1%&. 8et sale 1&'. :$ick ratio 1&1. Consol 1&2. Cooperative 1&3. 0$7er stock 1&4. (olvency 1&5. -i#$idity 1&6. ssets ; liability  o*ner9s e#$ity 1&!. ll of the above 1&%. C$rrent ratio 1&&. C$rrent assets to c$rrent liabilities 2''. :$ick ratio 2'1. :$ick ratio 2'2. ,eceivables t$rnover 2'3. 8et credit sales to averae net receivables 2'4. ,et$rn of investment ratio 2'5. Price
2'%. The ratio of common shareholders9 e#$ity to the n$mber of o$tstandin shares 2'&. The ratio of cost of oods sold to averae cost of inventory on hand 21'. 365 = receivable t$rnovers 211.0reakal$e of an investment 215. o$ble declinin balance method and (? method 216. /t is one that calc$lates a depreciation amo$nt reater than a straiht line amo$nt 21!. eation 21%. Cartel 21&. 0ank notes 22'. -a* of diminishin ret$rn 221. Price
22&. -ien 23'. Aliopoly 231. 0ook val$e 232. epletion 233. +air val$e 234. +ranchise 235. Capitalied cost 236. 0ond 23!. Btility val$e 23%. Perfect competition 23&. nn$al cost pattern 24'. P 1 1&2.5! 241. P 224.62 242. P 5 42!.43 243. P !56 244. %.64 D 245. !.44 years 246. The rst payment is made at the beinnin of each period. 24!. P42%'.4! 24%. (traiht line method 24&. eclinin balance method 25'. (inkin f$nd method

251. 3!.11D 252. 16.2%D 253. 15.&2D E 13.!3D 254. 13.64D 255. P1%%'' 256. P4133.33 25!. P5''' 25%. 21.4D 25&. 32D 26'. P1513.56 261. 11.!5 262. P46!2& 263. 4D E 4.1!D 264. 66.6D 265. 15.%D 266. P!6.&2 26!. P15614.5& 26%. P14'3.6% 26&. P134&%.6' 2!'. 11.5! years 2!1. P13265.%3

2!2. P1634!5.3! 2!3. P6!5' 2!4. %D 2!5. 4.55 years 2!6. P2''''' 2!!. %D 2!%. %.'3D 2!&. %.2%D 2%'. 14.2 years 2%1. 5.13D 2%2. 21.&! years 2%3. P24!51.34 2%4. 3.&2D 2%5. 3D 2%6. 1&.!2D 2%!. 12.!5D 2%%. P3.%! 2%&. 21.51D 2&'. 6D 2&1. P155 2&2. P!!.66 2&3. '.333

2&4. 6D 2&5. !D 2&6. 1.6'%44 2&!. P!'5.42 2&%. P256''' 2&&. P5'!365.&6 3''. P51&32!.&5

3'1. %D 3'2. 4 years 3'3. %D 3'4. %D 3'5. 1.616'! 3'6. '.616!%3 3'!. % years 3'%. 6.25 years 3'&. 6.1% years 31'. 12D E 12.616D E 12.'6D 311. 16.6! yrs E 11.6 yrs E 11.55 yrs 312. P15'''.'' 313. P1655'.'' 314. P1!4&2.&4

315. %.''D 316. %.24D 31!. !.&6D 31%. 1.612226''' 31&. '.!%!56612! 32'. 1.4%!%%6!1! 321. %.33D 322. 1.3!!12% 323. '.!2614& 324. 6.''D 325. 6.'&D 326. 5.%!D 32!. %.''D 32%. %.24D 32&. !.&2D 33'. P%'''''.'' 331. P&'!''&.21 332. P&11'5&.2' 333. P44'%6.6' 334. 4.56 years 335. &.5D 336. 11.6D compo$nded monthly

33!. !D 33%. %D 33&. %D 34'. 5.%D 341. save P55 by borro*in from yo$r friend 342. P3'655.6% 343. P%2&3%.2% 344. 14.4&D 345. P!1!%1.4! 346. 1&.!2D 34!. 3.''D and 3.'2D 34%. 11.%3D 34&. 1&.4%D 35'. P6'4'.2'

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!51. 0ook val$e !52. (alvae val$e !53. (alvae val$e !54. )oin val$e !55. P3!52'.34 !56. P13'%4.5% !5!. 3.'D !5%. P&'614.&3 !5&. !.56D !6'. 3.%5D !61. P1144.%1 !62. +air val$e !63. Ardinary ann$ity !64. eferred ann$ity

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!65. !66. !6!. !6%. !6&. !!'. !!1. !!2. !!3. !!4. !!5. !!6. !!!. !!%. !!&. !%'. !%1. !%2. !%3. !%4. !%5. !%6. !%!. !%%. !%&. !&'. !&1. !&2. !&3. !&4. !&5. !&6. !&!. !&%. !&&. %''.

nn$ity d$e The rst payment is made at the beinnin of each period. =i Present *orth factor mortiation epreciation eclinin balance method P236.2' P2'''.'' P62626&.'& & years P%5!.14 P4%'''.'' P3''''.'' P!545.45 P146'''.'' P1454.54 P3''''.'' %D 32.25D P1!6!2.!3 25D P24''.'' '.1 P!65''.'' P341'''.'' 1%.%&D P235'''.'' P!&1.26 P6!1'.%& P41244253.4' P3&2!.2! P&&65%.41 P&25'.'' F5'''''''' P541'33.66