In Which of the Following Problems Do You Need Engineering

question 11

Multiple Choice

In which of the following problems do you need engineering economics?

• A)to choose a course in your program
• B)to chose the right textbook
• C)to decide whether to borrow money from parents or from a bank
• D)to decide whether or not to buy a car
• E)to decide where to spend summer vacation

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Definitions:

Debt/Equity Ratio

A financial ratio indicating the relative proportion of shareholder's equity and debt used to finance a company's assets.

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary based on income level or profits.

Interest Rate

The cost, represented as a percentage of the principal, incurred by a borrower for the utilization of assets from a lender.

ROE

Return on Equity, a measure of a corporation's profitability by calculating how much profit a company generates with the money shareholders have invested.