Total number of printedpages—7___ MCC ToamGT 300% First Semester Examination — 2009 ENGINEERING ECONOMICS AND COSTING Full Marks ~70 Time-3 Hours pee \8™"Ainswer Question No. 1 whichis compulsory and any five trom the rest The figures inthe right hand margin incicate {ull marks forthe questions. 1. Answer the following questions: 2x10 (@) Explain the reasons for change in demand. (0) Whatis meant Elasticity of Supply ? PTO.(€) Inia supply of a commodity "X" at price Rs. 26/-is 10,000 kgs. At price Ris. 30/, the seller offers to sale 12% more. Is tho ‘supply highly elastic? (8) Given the production function Q = L?— 0.25 L?, what would be the marginal product otabour when L.= 10? (©) Explain Timo Value of Money. () Howis NPV diferent from IRR ? (@) Distinguish between a private project and a public project. (h)_ Whatismargin of safety ? Explain with the help ofa diagram. {) Distinguish between fixed cost and variable ccostwith examples. Mec toameT 30012 Conta. {How is Straightline method of eprecia- tion different from writen down value method? 2. Engineering Economics attempts to integrate ‘economic theory with business practice for facilitating decision making and forward planning by Engineers. - Explain. 10 0 3, The demand equation of Mr. Advaniis : 10 +0.4Y, where Q, P and Y are Quantity, price and income respectively. Assume that P ‘and Y = 100. 10 (2) Interpretthe equation (b) Find price elasticity andincome elasticity atthe given price and income levels. 4. Apersonis planning for his retired life. He has 10 more years of service. He would lke to Mcc toameT 30013 TO.deposit 20% of his salary, whichis Rs. 4,000 at the end of the first year and thereafter he wishes to deposit the amount with an annual increase of Fs. 500 forthe next 9 years with an interest rate of 15%, compounded annually, Find the total ‘amount at the end of the 10° year of the above service. 10 [(AG, 15%, 10) =3.3832 (FIA, 15%, 10) = 20.304) 5. a) What is Depreciation ? Discuss the different factors responsible for causing Depreciation. 5 (b) Consider the evaluation ofthe altemative ‘of constructing a bridge across aver. List the diferent benefits and costs related to tis ternative 5 Mec toamarso01 4 Cont. 6. Detine Cost Sheet. Prepare a Cost Sheet from telematonghentlow a [= [rans [aware] co Coston 12000 | 35000 | ee oe "ersten ing ements ae ® PoasecRewmaiae 480000 ses amon Facororeeni om sore roan onoon ‘Selling and Distribution overheads 20,000 odes aeo.eo Mcc tomer 30015 PTO.7. The following data are availabe from the records otacompany Fs. Sales £0,000 Variable Cost 20,000 Fixed Cost 15,000 You are required to (a) Caloulate the PV ratio, Break-even point and Margin of Safety atthislevel. 5 (b) Calculate the effect of 10% increase in sales price. 5 8 @ ©) Discuss the advantages of costsheet. Differentiate betwoon Revenue dominated cash flow and cost dominated cash flow. 3 Mec to4mGT 3001-6 Conta. Q@ an (c) What do you mean by financial system ? Point out the aifferent constituents of the financial system. 2 Mcc 1o4meT 30017