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# Previous Year Exam Questions of Engineering Economics of KIIT - EE by Ruparani Mahapatra

• Engineering Economics - EE
• 2015
• PYQ
• Kalinga Institute of Industrial Technology - KIIT
• Electrical and Electronics Engineering
• B.Tech
• 226 Views
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#### Previous Year Exam Questions of Engineering Economics of KIIT - EE by Ruparani Mahapatra / 3

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Semester 4th …. (Regular) Sub & Code…HS 2002 Branch (s)-EEE SPRING END SEMESTER EXAMINATION-2015 Name of the subject-Engineering Economics [Code No.-HS 2002] Full Marks: 60…….. Time: …03… Hours Answer any 6 questions including question No.1 which is compulsory. The figures in the margin indicate full marks. Candidates are required to give their answers in their own words as far as practicable and all parts of a question should be answered at one place only. Q No: Contents Marks Q1.(i) Find the present value and annual value of \$100 due in two years at a discount rate of 25%. (2x5) (ii)Explain why the indifference curve slopes downward. (iii)Differentiate between Nominal and Effective rate of interest. (iv) Write the condition for consumer’s equilibrium. (v)What is the shape of the Average Revenue curve of a monopolist? Why. (vi) What is the ‘Point of Inflection’, in a short run production function. Explain with adequate diagram. (vii)Consider the following cash flows from a project. Find its NPV at a discount rate of 5%. Year 0 1 2 3 Cash Flow -\$2 lakhs +50,000 +50000 +\$2 lakhs (viii)Explain the concept of ‘Margin of safety’. (ix) Explain the concept of ‘Marginal Product’, of a factor. (x) When does the central bank reduce its bank rate? Explain. Q2.(i) Why does the Marginal cost curve intersects the Average cost curve at its minimum in the short run? (4x2) (ii)If Rs 2 lakhs is invested for 3 years in a project which is expected to yield Rs. 90000,Rs. 70000 and 60000 over these years, find if it should be preferred based on Internal rate of return criteria if the MARR is given to be 10%. Q3. (i) The Total fixed cost of a producer is given as Rs.60000 with price per unit to be Rs.70 and the Average variable cost to be Rs.30.What should be the output produced to earn a profit of Rs.15000.(4x2)

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(ii) Food Corporation of India wants money to construct a new granary. If the granary will cost Rs.2 crore to the company, how much should it set aside each year for 5 years if the rate of interest is 10% per year? Q 4.(i). The Total cost function (TC) of a company is given as TC=100 +6Q +6Q2. If the price of its product is Rs.126 per unit and if the firm is part of a perfectly competitive industry, find (a)the short run equilibrium output of the firm.(b) the total profit. (4x2) (ii)From the following information forecast the sale for the year 2012 and 2014 by Least Square Method. Year 2003 2004 2005 2006 2007 2008 2009 Sale 80 95 120 150 145 160 170 (in 000) Q5.(i) Given the following information, find which should be selected based on Present Worth Criteria at 10%. (4x2) Project Initial Investment Life in years Net Annual cash flows A Rs.90 lakhs 15 12 lakhs B Rs.60 lakhs 15 Rs.9 lakhs (ii)Explain the Law of ‘Increasing Returns to scale’. Q6.(i) If the production function is given to be Q=10L3 + 2L2 +10L,Find (i)Average product and Marginal product of Labour(L) (ii)The labour units at the point of Maximum Average product.(4x2) (ii)Complete the following table. Output TFC TVC 0 TC MC AFC AVC 60 1 100 2 120 3 80 4 5 AC 400 500 Q7. (i). A project is expected to yield a total return of Rs.50 lakhs at the end of the 3rd year. It requires an initial investment of Rs.25 lakhs and annual expense of Rs.20000 over these years. Evaluate if the project should be selected based of Benefit –Cost ration criteria at 11%.(use present worth criteria) (4x2)

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(ii)Select the better alternative on Future worth Criteria at 15%. Year Ending Capital Investment(Rs.) Annual Expenses(Rs.) Value at the end of useful life Life in Years Alternatives A 8,50,000 1,95,000 1,15,000 10 B 10 lakhs 1,80,000 1,40,000 10 Q8. (i)Explain ‘Demand –Pull Inflation’ with adequate diagram. (4x2) (ii)The purchase value of an asset is given to be Rs.2 lakhs with an estimated life of 5 years. If the salvage value is given to be Rs. 20000, find the depreciation amount (Dt) and Book value (Bt) of the asset for the various years by Declining Balance method of Depreciation (Given K=10%,where K is the fixed % of depreciation). -------------------------------------------------------------------------