B.E/B.TECH. DEGREE EXAMINATION, APRIL/MAY 2010.

EIGHTH SEMESTER CIVIL ENGINEERING CE 1451- ENGINEERING ECONOMICS AND COST ANALYSIS (Regulation 2004) (Common to B.E. Part- Time Seventh Semester Regulation 2005) Time: Three hours Maximum: 100 marks Answer ALL qestions. PART A (10*2=20 marks) 1. 2. 3. 4. 5. What are the factors influencing managerial decisions? Explain how tastes and preferences of consumer determines demands. What are the conditions for monopolistic competition? What is cooperative organization? Define: (i) Cash credit (ii) Overdraft. 6. Which is the sole authority for the issue of currency of the country? 7. When is a firm said to be optimum size? 8. Define Bid pricing. 9. What is angle of incidence? 10. A lathe work shop owner uses 150 units of a certain spare part. He buys this from the market for Rs. 250. The same can be manufactured in his workshop with a fixed cost of Rs. 40,000 and a variable cost of Rs. 50. Do you suggest him to make or buy from the market? It is possible that he can sell 500 units of the same part to other lathe shops in the town. PART B (5*16=80) 11. (a) (i) What are the determinants of demands of a product? (6) (ii) Explain the nature of demand. What could be the different variations in the nature demand?(10) Or (b) (i) Discus how price-output relationship is determined for the industry in case of perfect competition.(8) (ii) Explain how a firm attains equilibrium position of price and output in the short run.(8)

12. (a) (I) Explain the concept of elasticity of supply with an example. (8) (II) Explain how supply and demand determine the equilibrium price. What happens if the supply curve shifts to right? Illustrate. (8) Or (b) Define commercial bank. Discuss in brief the various functions rendered by a commercial bank. 13. (a) (I) Explain the techiques used to analyse financial statements.(8) (II) Enumerate the limitations of financial statements.(8) Or (b) (I) What is credit creation? Explain the limitations of credit creation.(6) (II) From the following balances and further information, you are required to calculate cash from opertions: (Rs.) (Rs.) Debtors 1,50,000 1,40,000 Bills receivable 40,000 50,000 Creditors 60,000 75,000 Bills payable 40,000 35,000 Outstanding exp 5,000 6,000 Prepaid exp 4,000 3,500 Accrued income 6,000 8,000 Income received in advance 6,000 3,000 Closing inventory 1,00,000 20,000 Net profit for the year Rs. 3,50,000: Depreciation provided during the year Rs. 20,000. Profit on sale of buildings Rs. 10,000; loss on sale of machinery Rs. 5,000. (10) 14. (a) (I) Explain the features of Short-run Average-cost curve and Long-run Average-cost curve. (10) (II) Explain the different methods of cost based pricing with examples.(6) Or (b) A project which requires an initial investment of Rs. 10,000 is expected to generate annual cash flow of Rs. 5,000, Rs. 4,000, Rs. 3,000, Rs. 2,000 and Rs. 1,000 in the next five years which is the life of the project. Find out the IRR of the project. (16) 15. (a) (I) What are the components of a balance sheet? Explain the components. (8) (II) Explain economic feasibility and financial feasibility with illustrations. Or Particulars

(b) A furniture manufacture produces and sells file cabinets, office table and chairs. The various details regarding his business are given below: Product Selling price per unit Variable cost per unit Rs. Rs. File cabinet 1,000 900 Office tables 500 400 Chairs 200 125 Capacity of the firm Rs.1,50,000 of the total sale volume Annual fixed cost Rs. 20,00 Calculate: (i) (ii) BEPs Profit if firm works at 80% of capacity. % of rupee sales volume 20 30 50