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Engineering Economics

The document outlines an examination paper for a Bachelor of Engineering course in Engineering Economics at Pokhara University for Spring 2024. It includes various questions covering topics such as key economic principles, manufacturing costs, ecological footprints, financial calculations, project funding mechanisms, and financial ratios. Candidates are required to answer all questions in their own words within a 3-hour timeframe.

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8 views

Engineering Economics

The document outlines an examination paper for a Bachelor of Engineering course in Engineering Economics at Pokhara University for Spring 2024. It includes various questions covering topics such as key economic principles, manufacturing costs, ecological footprints, financial calculations, project funding mechanisms, and financial ratios. Candidates are required to answer all questions in their own words within a 3-hour timeframe.

Uploaded by

mediafantastic123
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

POKHARA UNIVERSIT Y

Level: Bachelor Semester: Spring Year : 2024


Programme: BE Full Marks:100
Course: Engineering Economics Pass Marks: 45
Time : 3hrs.
Candidates are required to give their answers in their own words as far
as practicable.
The figures in the margin indicate full marks.
Attempt all the questions.
1. a) Write the key principles of economy. 5
b) Explain the Manufacturing cost and non-manufacturing cast. 5
c) Describe the ecological foot print. 5
2. a) A man aged 30 years now had borrowed Rs. 5,00,000 from a bank 7
for his further studies at the age of 20 years. The bank was charged
interest at 12% per year compounded quarterly. He wishes to pay that
loan from last 10 semi annual way with equal installment basis and
now he has just cleared the loan. What amount did he pay in each
installment?
b) Star construction company planning to purchase from different two 8
companies A & B. Because it was based on estimation using
co-Terminated 5 years and 8 years respectively.
Investment Revenue Expenses Salvage value
Rs. Rs. Rs. Rs.
Plain A 350000000 13000000 1500000 3500000
Plain B 500000000 17500000 2500000 5000000
3. a) Find both types of B/C ratios using PW formulation for a project 7
having first investment cost of Rs. 1,50,000; project life 10 years;
salvage value Rs. 30,000; annual benefit Rs. 65,000; annual O & M
cost Rs. 20,000 & MARR=12% per year.
b) Perform sensitivity analysis of the following project over the range of 8
±30% in i) Initial investment ii) Annual revenue iii) Useful life.
Initial investment = 14,500
Annual revenue = 4,000
Salvage value =1,000
Useful life = 6 years
MARR = 20%
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4. a) Compute discounting payback period and B/C ratio from the 7
following data.
Initial investment Rs. 4, 00,000
Annual revenue Rs. 1,50,000
Annual cost Rs. 30,000
Salvage value Rs. 50,000
Useful life year 8
MARR 12%
b) Select the best project by using IRR method when MARR is 8%. 8
Items Project A Project B
Initial investment 3,00,000 5,00,000
Annual revenue 90,000 1,75,000
Life Year 6 6
Salvage value 10,000 1,00,000
5. a) After passing civil Engineering course suppose you are going to start 8
housing construction work, If you started it, describe the project
funding mechanism, How many funding mechanism are there please
describe.
b) What are financial ratios and why are they important in financial 7
analysis and decision making? How do financial ratios provide
insight into a company’s performance and financial health?
6. a) A construction equipment has initial cost & annual saving per year 8
are of Rs 40000 & Rs 20000 respectively with annual operation &
maintenance cost of 7000. It will depreciate by MACRS method &
will have no salvage value. The useful life of equipment is 5 years.
Estimate before & after tax cash flow. The company pays income tax
@40%. Evaluate after tax by FW method.
b) Describe the Taxation law and what do you understand about 7
corporate income Tax?
7. Write short notes on: (Any two) 2×5
a) Balance sheet
b) Nominal rate of interest
c) Demand and supply

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