KURINJI COLLEGE OF ENGINEERING AND TECHNOLOGY

MANAPPARAI-621307
DEPARTMENT OF MECHANICAL ENGINEERING
MODEL EXAM
GE 1451- ENGINEERING ECONOMICS AND COST ANALYSIS

YEAR/SEM : IV/VIII
DATE
: 19/03/2014

TIME:3Hrs
PART-A

10x2=20

1. State the Law of demand.

2. What is Break-Even Analysis?
3. What is Value Engineering?
4. Explain the concept of Discounting.
5. What is present worth method of comparing alternatives?
6. How is rate of return method useful in evaluating the alternatives?
7. What is Predictive Maintenance?
8. What are all the types of replacement Problem?
9. State the objective behind provision of depreciation.
10.What is Sinking fund method of depreciation?
PART-B

5x16=80

11.(a) i. Draw a break even chart and explain it's components.

ii. From the following figures find out
1. The break even sales quantity
2.The break even sales
3. If the production quantity is 30,000. Find the contribution and Margin of safety
Fixed cost
: Rs.10,00,000
Variable cost/unit :Rs.50
Selling Price/unit
:Rs.100
(OR)
11.(b) What is Process Planning? What are it's objectives? Explain the various steps in
process planning.
12.(a) i. Write in detail about value engineering procedure.
ii. Discuss about the single payment compound amount factor.
(OR)
12.(b) Mr.Ganesh is planning for his retired life. He has ten more years of service. He
would like to deposit 20% of his salary, which is Rs.10,000, at the end of the first year
and thereafter he wishes to deposit every year with an annual increase of Rs.2,000 for
the next 9 years at an interest rate of 20%. Find the total amount at the end of the tenth
year at which time he retires.

13.(a) Consider the following cash flow of a project.

Year

Cash flow
Rs.

-10,000

4,000

4,500

5,000

5,500

6,000

Find the rate of return of the project.

(OR)
13.(b) Explain the importance of "cash flow" and how does the financial statement
analysis play a role of the internal economical environment for an organization.
14.(a) Analyze the various types of maintenance and their relative merits and demerits
(OR)
14.(b) An electronic equipment contains 1,000 resistors. When any resistor fails, it is
replaced. The cost of replacing a resister individually is Rs.7. If all the resisters are
replaced at the same time, the cost pre resister is Rs4. The percent surviving, S (i) at
i

S(i)

100

90

85

65

35

15

the end of the month i is tabulated now.

Find what is the optimum replacement plan.

15.(a) Discuss all the methods of depreciation.
(OR)
15.(b) A company has purchased a bus for it's officers for Rs.10,00,000 the
expected life of the bus 8 years. The salvage value of the bus at the end of it's life is
Rs 1,50,000. Find the following using the sinking fund method of depreciation:
i. Depreciation at the end of third year and fifth year,
ii. Book value at the end of second year and sixth year.

***All the best***