Save trees use e-Question Paper DOWNLOAD THIS FREE AT www.viuresource.com Go green usw { 10ME71 Seventh Semester B.E, Degree Examination, Dec.2013 / Jan.2014 Engineering Economy Time: 3 hrs Max. Marks: 11. Answer any FIVE full questions, selecting ‘atleast TWO questions from each part. 2. Use of discrete imterest tables is permitted. @ A 1a. Distinguish between strategy and tacies with suitable examples. osarts) ' Explain the law of demand and supply with suitable example ae) fe Determine the effetive interest rite for a nominal annual rate of&% tat gg vompounded i) Seri annually i) Quarterly ii) Monthly iv) Bai (06 Mark) 4A peisoo invests a sum of Rs 50,000/- in a Nationalized Bus ingest rate of 18%o for 15 years. The compounding is monly. Find thel@jjgurey of the deposit after 15 years? (o4Marts) 2 a, Sate the conditions for present worth compariso (06 Marts) bh Determine the equivalent present worth of the f of year and eash flows extending over 8 years using annual interest rte of (4 Marks) h Flow Fig. Q24b) ‘What do you understand by preset ‘An Entrepreneurs intending 10 ‘most difficult. Te Lessen the chanct jess knows thatthe fist few years are Toan plan for start up capital is proposed in ‘which interest pail during t 40 yeaa beat 3%, 6%, For the next 2 years if 12% For the last 2 years of th Tow large a loan can be justified for proposed repayments atthe end of 2\ tively for Rs 26,000/-, Rs 30,000 and Rs 50,000/= for 2d and 6 ya 1 (07 Marks) 3 a Two types of poo Wggerter Alpha and Beta are under consideration for a particular application. An json is to be made at an interest rate of 10%. Following cost estimation fined. Determine the Annual Equivalent costs of the 880 systems, sl (oMarks) aga [_— Baa E60 | R25 0007 Primed servis ie |S yeas [years Selage vale eon |-Rs 3,000" ‘ana opera coe 2900" RS 100= | ‘onal Agricultural Equipment bas a service of 6 years. A newly designed < 50% costlier than the conventional one but his many advantages. The operates of bath these equipment are almost same and salvage value is neslible ‘What will be the service life ofthe New equipment that makes its cost comparable 10 that of the gpventional one at i= 1086? (0 Marks) Jefine the following terms: ) MARR fi) IRR iii) ERR plain the eauses for deprecation "An XYZ company’ has purchased an equipment whose first cost is Rs 2,00,000 with an ‘stimated life of 8 years. The estimated salvage value ofthe equipment is Rs 40,000 atthe ‘end of its life time. Determine the depreciation charge and book value atthe end of various yeas using SOYD method, (os Marts) Lof2 BRANCHES | ALL SEMESTERS | NOTES | QUESTON PAPERS | LAB MANUALS A Viuresource Go Green initiativeSave trees use e-Question Paper Go green DOWNLOAD THIS FREE AT www.viuresource.com 1oME71 PART 5s. What ate the diferent elements of cost? Explain. ciffees 1. Differentiate between estimation std costing (offaris ©. Fromthe folowing data ested to manufacturing 9 standard produt fr the month of Sy 2012, prepare a statement showing the cost and profit per un 1. Raw Material used ~ 40,000" 2. Diet wa 3. Machine hours worked =9,500hr= 4, Machine hourrate @ Rs 4 @ 5. Office overeat 20% of works cost 6. Sling overhead @ Rs I 7. Unis produced = 2,000 8. Units sol! 18,000 @ Rs Dron 6 a What do you understand by the following Financial terms 4,000 {Preferential shares ii) Assets iil) Liabilities iv) 4 %) Sundry ereditors. (Qo Marks) b. Following is the Financial status of a company as on 31% irc rea Balance sheet as on 31 March 2008, (0 Marks) Paniaulars | Amoom ‘Caah inf Sundry debtor Bank oa’s Bills payable ing. their uo Marks) smpany, with the following information, tock at the end = 5000 more than the stock atthe iw) Gross profit ratio= 20% v) Current io = 0.75 0 Marks) ‘beginning ii) Saf liabilities = Rs 694 Briefly explain of profit planing, (5 Marks) EaMprises has Rs 10,000 cash balance. The expected sales are to 12,000/- and Rs 15,000/- respectively. I is estimated that the jin 3 months are Rs 15,000/-, Rs 16,000/- and Rs 12,000 urs Bank loan is assumed 10 be raised to a value of Rs 5,000 nd show the cash balance a the beginning of September. (08 Maes) hhudget ftom the folowing particulars when the estimated prive/ks Is .Z=Rs4. Mataial | Exinate coum of ates as « 0.00 ¥ 2ipnaao z 2isnwo « ‘Meri [ Sk a he Being [ Siok ae end xine 7% “0.00 1500 y 0000 2n00 z a0 50.000 (07 Mars) 20f2 BRANCHES | ALL SEMESTERS | NOTES | QUESTON PAPERS | LAB MANUALS A Viuresource Go Green initiative