1. Discuss the factors which influence demand and supply? 2. Define Economics? 3.

What are the steps in process planning? 4. Briefly explain the steps of value engineering? 5. Discuss the advantages and application areas of value engineering? 6. Explain time value of money? 7. A person deposits a sum of Rs. 20,000 at the interest rate of 18% compounded annually for 10 years. Find the maturity value after 10 years? 8. What is present worth method of comparison? 9. What is sinking fund method of depreciation? 10. The first coat of laying machine is Rs. 80, 00,000. Its salvage value after 5 years is Rs. 50,000. The length of road that can be laid by the machine during its lifetime is 75,000 km. In its 3rd year of operation the length road laid is 2,000 km. Find the depreciation of the equipment for that year. 1. a) Alpha Associates has the following details: (10) Fixed cost = Rs 20, 00,000 Variable cost per unit = Rs. 100 Selling price per unit = Rs. 200 Find a) The break even sales quantity b) The break even sales c) The actual production quantity is 60,000, find (i) contribution and (ii) marg in of safety by all methods b) Explain law of supply and demand (6) (Or) b) (i) Explain break-even point. Draw a break-even chart and explain its compone nts. (10) (ii) What is the Scope of engineering economics? (6) 2. (i) Explain value engineering, functions, aims and value engineering procedur e in detail ? (12) (ii) Explain time value of money with examples (4) (or) (i) A company has to replace a present facility after 15 years at an outlay of R s. 5,00,000. It plans to deposit an equal amount at the end of every year for th e next 15 years at an interest rate of 18% compounded annually. Find the equival ent amount that must be deposited at the end of every year for the next 15 years . (8) (ii) A person is planning for his retired life. He has 10 more years of service. He would like to deposit 20% of his salary, which is Rs 4,000, at the end of th e first year, and thereafter he wishes to deposit the amount with an annual incr ease of Rs. 500 for the next 9 years with an interest rate of 15%. Find the tota l amount at the end of the 10th year of the above series. (8) 3. (A) Alpha industry is planning to expand its production operation. It has ide ntified three different Technologies for meeting the goal. The initial outlay an d annual revenue with respect to each of the technologies are summarized in tabl e. Suggest the best technology which is to be implemented based on the present w

orth method of comparison assuming 20% interest rate, compounded annually. (16) Initial outlay (Rs) Annual Revenue (Rs) Life (Years) Technology 1 12,00,000 4,00,000 10 Technology 2 20,00,000 6,00,000 10 Technology 3 18,00,000 5,00,000 10 (or) (B) A company is planning to expand its present business activity. It has two al ternatives for the expansion programme and the corresponding cashflows are tabul ated below. Each alternative has a life of five years and a negligible salvage v alue. The minimum attractive rate of return for the company is 12%. Suggest the best alternative to the company. Initial investment (Rs) Yearly revenue (Rs) Alternative 1 5,00,000 1,70,000 Alternative 2 8,00,000 2,70,000 4. (A) A steel highway bridge must either be reinforced or replaced. Reinforceme nt would cost Rs. 6,60,000 and would make the bridge fit for an additional five years of servi ce. If it is Reinforced, it is estimated that its net salvage value would be Rs. 4,00,000 at the time it is Retired from service. The new prestressed concrete bridge would cost Rs. 15,00,0 00 and Would meet the foreseeable requirements of the next 40 years. Such a bridge woul d have no Salvage value. It is estimated that the annual maintenance cost of the reinforced bridge Would exceed that of the concrete bridge by 96,000. If the bridge is replaced by a new Prestressed concrete bridge, the scarp value of the steel would exceed the demol ition cost By Rs. 420,000. Assume that the money costs the state 10%. What would you recomm end? (16) (Or) (B) What is replacement? Types of replacement problem? Determination of economic life of an asset? Concept of Challenger and Defender? 5. A (i) Define the following. (a) Depreciation ( ii) (b) Book Value (4) (iii) Distinguish between declining balance method of depreciation and double de clining balance method of depreciation. (8) (iv) Explain service output method of depreciation? (4) (Or) (B) A Company has recently purchased an overhead travelling crane for Rs. 25, 00 ,000. Its expected life is seven years and the salvage value at the end of the l ife of the overhead travelling crane is Rs. 1, 00,000. Using the straight line m ethod of depreciation, find the depreciation and book value at the end of third and fourth year after the crane is purchased.