Professional Documents
Culture Documents
1. In the sinking fund deposit method the annual uniform payment 'R', when the
principal is 'P' sinking fund interest is 'I' and the period is 'n', is given by ______.
2. Define 'Depletion'
3. Name any four methods of calculating depreciation
4. What is meant by capitalized cost? Where is it used?
5. A storage tank was priced at Rs.5000 in 1982 when the cost index was 460. What is
its value today when the cost index is 800?
6. Define 'Acid Test'
7. List the factors to be considered in the evaluation of capital requirements for a
process plant
8. Explain the term 'Capacity factor'
9. Define : Capitalized earning rate and capitalized pay-out time
10. Discuss incremental costs for economic analysis
11. Explain the terms: benefit cost ratio and profitability index
12. Name the different methods of selecting various alternates
13. What is meant by elasticity of demand?
14. Explain: Consumer surplus
15. What are the different types of business cycles?
16. What is GNP?
17. What is fatigue?
18. Name the different types business cycles
19. What is meant by merit rating?
20. Explain Accident proneness
Part B (5 x 12 = 60 Marks)
21. A process plant has an initial investment of Rs.50 lakhs. The estimated salvage value
is Rs.2 lakhs. It has a life of 8 years. Estimate the book value of the plant after 5
years by (a) Straight line depreciation method (b) Declining balance method and (c)
Sinking fund method with a sinking fund interest rate of 10%.
Or
22. A pump installation costing Rs.2000 has a salvage value of Rs.400. It requires
Rs.200 for its annual maintenance. If the value of the money is 10% and the pump
has a life of 3 years, what is the present worth of service rendered by the pump?
What is the capitalized assuming perpetual operation?
23. Discuss in detail the various components of a balance sheet and the economic ratios
and their significance
Or
24. The annual fixed charges for the plant is Rs.1,00,000 and the variable cost is
Rs.1,40,000 at 70% capacity with a net sales of Rs.2,80,000.
(a) What is the BEP in units of production is the selling price per unit is Rs.40
(b) If the product produced above BEP is dumped abroad at a price 15% more than
the variable cost, what is the new gross profit at 100% capacity?
25. A furnace installation 'A' costs Rs.1.2 lakhs with operating cost at Rs.48,000 per
annum. It has a life of 10 years. The installation 'B' guarantees same performance
with an operating cost of Rs.38,000 with an initial cost of Rs.2.5 lakhs. Salvage value
for both is Rs.10,000. What increase in life would be required for plan 'B' to warrant
its selection if money is worth 10%.
Or
Proposal A B C D E
Life, years 10 6 7 9 12
Rank these proposals (a) in the order of profitability after payback period, and (b)
Net present value method assuming an interest rate of 10%.
Or
Or
Part B (5 x 12 = 60 Marks)
21. What are the methods of calculating depreciation? Explain any two methods
Or
22. What are the features of Walra's law? Explain its theory based on equilibrium
conditions
23. Explain the important features of balance sheets and its advantages
Or
24. What are the sources of finance? Explain the long term capital requirements of a
company
25. What is internal rate of return method? How is it useful in ranking the project?
Or
Or
28. Draw a break even chart and write the advantages of Break even chart on
managerial decision
29. How will you prevent the accidents in Industry? Explain your answer based on your
Industrial knowledge
Or
30. What are the basic elements of MBO? Explain them in detail.
III
Part B (5 x 12 = 60 Marks)
Or
22. Describe the equations for economic studies
Or
24. What is balance sheet? Explain its preparation with an example
Or
26. Discuss about the cash flow analysis
Or
28. Discuss about multiplier and accelerator
IV
Part B (5 x 12 = 60 Marks)
21. A central air-conditioning unit is purchased for Rs.2,50,000 and has an expected life
of 10 years. The salvage for the unit at that time is expected to be Rs.40,000. What
will be the book value at the end of 7 years (use sum of years digits method of
depreciation).
Or
Or
Or
26. Write a brief note on Economic balance in cyclic operations and multiple equipment
units
27. (a) Discuss the factors that determine the price of elasticity of demand
(b) Describe different phases of business cycle
Or
28. Explain demand forecasting. What are the various methods by which demand can be
forecast?
29. Explain the various methods of job evaluation and its merits and demerits.
Or
30. What are the factors related to accident proneness? Suggest remedial measures.