CS/D.
TECH/CSE/IT/APM/'IT(NJ/ODD/SEM-3/
HSMC•301 /20 l 9-20
�
MAULANA ABUL KALAM AZAD UNIVERSITY OF
TECHNOLOGY,WESTBENGAL
Paper Code : HSMC-301
PUJD : 03446 ( To be mentioned In the main answer scrJpt J
ECONOMICS FOR ENGINEERS
Time Allotted : 3 Hours Full Marks : 70
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Thejlgures In-the margin lndlcatejull marks. •
Candldates are required to glue their answers In their own
words asjar as practicable.
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GROUP-A
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( Multf pie Choice Type Questions )
1. Choose the correct alternatives for any ten of the
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following: 10x1=10
/4 • The opportuntty cost of a goo� 1s
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a) The Ume lost in [Link] 1t
b) the expenditure on 1t
� the quanuty of the next best alternative
sacrtflced to produce one unit of that good
,
dJ. the amount of savings Jost.
11) If t�c lnf1at1on rate ls 7% per yea�. market interest
• rate is 15%, then the real interest rate wJU be
a) 7% b) 10%
c) 3% d) 12%.
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* •-3301/3(N)
2
CS/B. TECH!CSE/IT/APM
/TT(NJ/ODD!SEM-3/
•, ' HSMC-301/2019-20
VJ)t1 Debt t
o Equlty Ratlo comes under
a) Leverage Ratlo
�Llquldlty Ratio
c) Prontablltty Rauo
dJ Dividend Ratio.
ix) Which one of the
followlng ls Involved to measure .
tnnauon
/aJ Non11na1 Interest Rate
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c) Consumer Price Index
d) None of these.·
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j If A and B are two independent events then
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P(AnBJ•
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a) • P(A/ B) x P{B) ✓.hf P(A)x P(B)
C) P(AUB) d) P(A)+ P(B).
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)'1( To comput_e the updated cost of a boiler w1th same
capacity in a power plant, we use
a) Per Unit Cost Model 'f
)Jr Cost Index Model
c) Power Sizing Model
d) Segmenting Model. •
* •-3301 /3(NJ 3 I Turi? over
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� ConlrlbuUon margin ls the
excess of sale prJcc over �a
� rlablc cost
b)· excess of sale price over fixed cost
c) excess of sale price over both variable cost and
fixed cost
d) · none of these.
GROUP-B
( Short Answer Type Questions )
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Answer any three of the foJlowJng.
· 2. Write a brief note on Per Unit Cost method of
esumauon.
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3. [Link] between Consumer Price Index (CPU and
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Wholesale Prtcc Index (WPI}.
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� d for
4.,;,,, A machine n�eded fo� � years can. ge pur:�a� -
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Rs. 77,662 and sold at· the end of period for
about.,
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leased for
/ . Rs. ·25,00� A comp'.31'able machJnc can. b_e_
on
Rs. 30,000 per year. If a flrm expects return of 20%
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investments, should Jt buy or lease the machine ?
Capital recovery factor � 3 years ) = . 47 47. Sinking
fund factor ( 20%, 3 years= .2747 J. •
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;; Define 1nflat1on. What are the causes of inflation ? 2 + 3
•f A student has taken a loan of Rs. 3.00,000 for 3 years
· at 9% per annum. Calculate h�w much needs to be
1
repaid at the end of 3 years under compound interest
rate.
* * -3301 /3{N) 4
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I ISM C-301 /20 I
GROUP - C 9·20
( Long �swc r 'fype
_ Question�·)
Answer any three of tlic
follO\V1ng. 3 X 15 -
7. A fl r,u
wl1osc cost of capital ls 45
1 O% • consJdcrlng two
/ u1utually exclusive projects X and y
• flJe details arc as
follows : [Link]
I
- Year
0
I Project A / Project B I
(70,000}
(7,00.000}
• 1 10.00.0 so,ooo
20,000 40.000
30,000 . 20,000
45,000 10.000
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5 60.000
10.000
} Total Cash Flow J 1.65,000 j 1.30.000
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Compute NPV, Profit�billty Index and IRR of the. two
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projects. 5+5+5
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8. aJ Dc{tne Learning curve. •
b) FJvc years ago. when the relevant cost index was
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120. a nuclear centrifuge cost $4o,gqo.. T�1e
centrifuge had ·a capacity of separating
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1500 gallons of ionized solu_tton per hour. Today. it
ts desired to build a centrifuge with capacity of
4500 gallons per hour. but the cost index now Is
3�0. Assuming a power-sizing exponent lo reflect
economics of scale. x. of 0·75, use the power-sizing·
model- to determine llle approxiinate cost
(expressed in t�day's dollars) of tlle new rector.
5 + 10
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cunt�tl prmh u•tttu t enpn hllll,\•, Sh� hn� lhr
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nltcrnntlvc�. The nrst nlh�runtlvt� wm,ht l'N�uu h�
stg1,lllennt chnn�t'S tu pr,�seut oprl'nlhlllN, hwhultn
tucrcascd nutomntton. Tht� m�t'ornl our. h1,•otvr.�
smnll d,m,!tt�s tu plnnt npt'rnlton nncl wouhl not
tnducle nny 1ww aulomntlon. I ht' I hlrtl nlk1·nnth•r.
ts lo nmltt� no dmn�,�� (dn not hlngl,
J\s a member or the plnul nmungt'lltc�u, you hnvr.
assigned the tnsk or mmlysht!{ lht! thn�t�
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nlternattves mul rc('Olllmcmlh1H n l'Ottrsc or nctton.
The Increased cost anti tncrcas,:d m11ntnl l'l�\'t�tHtr.
for the nrst two altcru:,Uvcs :ire �hown hclow :
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Altcrnntlvc lt1fn·ns,·tl Cost
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----···· ...........
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,..._, __
I Its. :1. 00. 000 ------··- l�:i. I ,,l:!,000
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,\\'l�l'l\(tl' l�:i. I. I H,000
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Poor H:i.
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2 Rs. 85,000 Ooud
-· - l�:i. tHi.000
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l�:t. ·lli.000 '
Poor H:t, 17,000
3 (Current
operation)
0 .... 0
The sales department csthnatcs the probabtlity of
Good. Average nnd Poor future sales as 0<l0,
0·60 and 0· l 0 respectively. The rak of Interest per
year Is� study period ls 5 years. with help of n
decision tree ctctcnnlnc which altcrnnlivc Is
preferred. a + 12
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IO. n) I) [Link]'· rntl< ' m111 1yHIH m1cl Hlnl<: ridvauln/(CH of
nnnly�I�.
111fon1 1nl1 011 n!Hlll llu g to Intel
h) 1,�ro111 ri0 11ow111g
d t o prepare Ha
l,lmltt•cl· you arc 1:n1p po nc
�umnmrlicd hah.,;icc sheet •
(l) Cuncul Hallo :2 2·fi
(it) Acid 'l'csl RnUo = J ·5
0·2
(lll) Gross Profit to Sales =
g Cap HaJ = 0·3
Ov) Ncl Profil/Worktn
(v) Salcs/ Ncl F'txc
(vl) Salcs/Ncl Worlh
<l As scl = 2.
= 1 ·5 om
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=6
(vH} Sales/Debtors
t
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tlal = 1
(vUO Rcscrvc/Cap
on g rc rrn Loan= 20
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(lx) Net worth/
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lly = 2 1i1onths
(x) Stoel< veloc 0. 5 + 10
1 0 , 00 . 0 0
aid up s h ar e capital= S
(xi) P 3 x·5
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th re e of the following:
on any
yl Write notes
/1 Br eak-even Analysts
(
)" [Link] costs
�
ts
c.) , Opportunity cos
.,r
abHily & Jo tnl ProbabHJly
d) Prob
c), OcprcctaUon.
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