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How to Pass Engineering Economics

The document outlines a study guide for passing Engineering Economics, detailing key topics and numerical problems across ten units. It covers concepts such as demand, cost, time value of money, investment analysis, project risks, and financial statements. Additionally, it includes short notes on various financial and economic principles relevant to the course.

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umeshsah5242
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2 views

How to Pass Engineering Economics

The document outlines a study guide for passing Engineering Economics, detailing key topics and numerical problems across ten units. It covers concepts such as demand, cost, time value of money, investment analysis, project risks, and financial statements. Additionally, it includes short notes on various financial and economic principles relevant to the course.

Uploaded by

umeshsah5242
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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How to PASS Engineering Economics

computer engineering (Pokhara University)

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How to PASS Engineering Economics?


Unit -1 (7-10 marks)
1. Define engineering economics, importance and principle.
2. Define demand, supply, utility, marginal utility, and elasticity of demand. Explain
law of demand / supply / diminishing utility with suitable example and figure.
3. Describe three kinds of elasticity of demand with suitable figure.

Unit – 2 (8 Marks)
1. Define cost. Explain the elements of cost.
2. Explain manufacturing cost and non-manufacturing cost with example. OR
Define prime cost and overhead cost with example. OR Cost classification with
example.
3. Explain differential cost, opportunity cost, marginal cost, sunk cost, fixed cost
and variable cost with suitable example.
4. Following are the data for the production of a 100 badminton racquets:
Labour rate @ Rs. 40/hr,
Leather 50m @ Rs. 200/m,
Gut 300 m @ Rs. 50 /m,
Graphite 100kg @ Rs. 200/kg,
Total annul factory overhead Rs. 500000,
Total annual direct Labour hours 25000 hrs,
Labour hours needed 200 hrs.
Show the cost breakdown and calculate the total cost for per racquet.

Unit – 3 (8 Marks)
1. Explain Time Value of Money, Interest, Simple interest Vs compound interest,
Nominal Vs effective interest rates.
2. Numerical: calculate compound, nominal and effective interest rate.
3. Numerical: calculate PW/AW/FW (in cash flow diagram/ cash flow table/
language).
4. Development of Formula between P/A/F, i and N.

Assistant Prof.: Dipak Chaudhary Nepal Engineering College

Downloaded by Umesh Sah ([email protected])


lOMoARcPSD|55223800

Unit – 4 (15 Marks)


1. Numerical: Calculate IRR & ERR, is this project is feasible or not at MARR%,
draw balance diagram in IRR method.
2. Numerical: Determine both types of B/C using PW/FW/AW method.
3. Numerical: Calculate Simple and Discounted payback period.
4. Numerical Equivalent worth methods: Calculate PW, FW & AW.
5. IRR Vs ERR
Unit –5 (15 Marks)
1. Numerical Comparing mutually exclusive alternative having same useful life by:
IRR / ERR / BCR method.
2. Numerical Comparing mutually exclusive alternative having different useful life
by: Repeatability assumption / Co-terminated assumption / Capitalized worth
method.
3. Theory or Numerical Comparing mutually exclusive contingent and independent
projects in combination.

Unit – 6 (8 Marks)
1. Numerical: Sensitivity analysis, Break even analysis and Scenario analysis.
2. What is project risks? Sources and method of project risks.

Unit –7 (5 - 7 Marks)
1. Explain Ecological limits, economic theory and Sustainable development.
2. Ecological footprint and Overcoming ecological limit.

Unit – 8 (8-12 Marks)


1. Numerical: Determine annual depreciation and book value using Straight line,
Double declining with conversion to SL, SOYD, Sinking fund, MACRS methods.
2. Short Notes: Corporate income tax, VAT, taxation law in Nepal.
3. Depreciation and its causes.

Assistant Prof.: Dipak Chaudhary Nepal Engineering College

Downloaded by Umesh Sah ([email protected])


lOMoARcPSD|55223800

Unit – 9 (5-8 Marks)


1. Method of financing (Equity financing and Debt financing) / Cost of capital /
Project funding mechanism / FIRR, EIRR, ROE
2. Numerical: Calculate WACC, Cost of debt.

Unit – 10 (8-13 Marks)


1. Explain Financial Ratios (Major Financial Ratios).
2. Describe income statement and balance sheet with their format.
3. Numerical: From the following trial balance prepare P/L account and
Balance sheet.

Short Notes:
1. Financial Ratios / Balance sheet and P/L account
2. Causes of depreciation/ VAT / Corporate tax
3. Ecological limit / Sustainable development/ Ecological footprint
4. Project funding mechanisms / FIRR and EIRR/ Capital Structure
5. Mutually exclusive contingent and independent projects / Capitalized
worth
6. Nominal rate Vs Effective rate
7. IRR Vs ERR / Payback period
8. Sources of project risks
9. Types of cost / Life cycle cost
10. Stock and Bond

Assistant Prof.: Dipak Chaudhary Nepal Engineering College

Downloaded by Umesh Sah ([email protected])

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