MG6863 Engineering Economics Important Questions April May 2016
Anna
University Exams April / May 2017 – Regulation 2013
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Unique Important Questions – 8th Semester BE/BTECH
MG6863 Engineering Economics
Unit 1
1.
What is cost volume profit analysis? State the assumptions & applications
of breakeven analysis.
2.
Explain the process of material selection in new product development
3.
Analyse the various types of elasticity of demand and their usefulness
4.
Discuss the flow of goods, services, resources and money payment in a simple
economy
5.
Explain in detail the different elements of cost
6.
A firm has a fixed of Rs50,000 selling price per unit is Rs50 and variable cost
per unit is Rs25. Present
Level
of production is 3,500 units
(A)
determine break-even point in terms of volume & sales value (B) calculate
margin of safety
7.
Engineers at General motors want to investigate alternative design. Both the
design will serve
equally
well and will involve the same material and manufacturing cost expect for the
lathe and
grinder
operations. Design A will require 20 hours of lathe time and 8 hours of grinder
time per
10,000
units. Design B will require of lathe time and 22 hours of grinder time per
10,000 units. The
operating
cost of the lathe including labour is Rs.400 per hour. The operating cost of
the grinder
including
labour is Rs.300 per hour. Which design should be adopted if 10,00,000 units
are required
per
year and what is the economic advantage of the best alternative.
Unit II
1.
What is value engineering? With a suitable example, explain the various phases
of value
engineering
2.
What is uniform gradient conversion? Illustrate with an example.
3.
What is process planning? What are its objectives? Explain the various steps in
process planning?
4.
What is time value of money? How is it useful in taking investment related
decision?
5.
Explain the criteria for make or buy decision and its approach.
6.
A person is planning for his retired life. He has 10 more years of service. He
would like to deposit
Rs8500
at the end of the first year and thereafter he wishes to deposit the amount
with an annual
decrease
of Rs500 for the next 9 years with an interest rate of 15%. Find the total
amount at the
end
of the 10th year of the above series
7.
A manufacturing company has extra capacity which can be used to produce gears
that the company
has
been buying for Rs300 each. If the company makes the gears it will incur
material cost of Rs90
per
unit, labour cost of Rs120 per unit and variable overhead cost of Rs30 per
unit. The annual fixed
cost
associated with unused capacity is Rs240000. Demand over the next year is
estimated at 4000
units.
(a)should the company make the gears or continue to buy? (b) Suppose the
capacity, could be
used
by another department for the production of some pump Components that would
cover its
fixed
and variable cost and contribute Rs90000 to profit. Which Would be more
advantageous, gear
production
Unit III
1.
Explain all the rate of return methods
2.
What is annual equivalent method? Explain with example.
3.
Write about the revenue dominated cash flow diagram and cost dominated cash
flow diagram.
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4.
The cost of erecting an oil well is Rs.15000000. the annual equivalent yield
from the oil well is
Rs.3000000.
The salvage value after its useful life of 10 years is Rs.200000. Assuming an
interest
rate
of 18%, compounded annually, find out whether the erection of the oil well is
financially
feasible,
based on the present worth method
5.
Discuss with example. Present worth method and future worth method of
comparison of
alternatives.
6.
Explain the concept cash flows and different methods of comparison of alternatives.
List the merits
and
limitation of each method if any
Unit IV
1.
What is defender challenger concepts in replacement? Illustrate with an example
2.
Explain the causes for replacement of assets in detail with examples.
3.
Explain with example the simple probabilistic models for the items which fail
completely?
4.
Discuss the factors on replacement problem?
5.
Discuss the reasons for replacement and the different types of maintenance and
distinguish
between
breakdown and preventive maintenance
6.
What are the objectives of plant maintenance? Explain different types of
maintenance adopted on
an
industry
7.
Machine A costs Rs.90000 and the operating costs are estimated at Rs.2000 for
the first year
increasing
by Rs.20,000 per year in the second and subsequent years. Machine B COSTS
Rs100000
and
operating costs are Rs.4000 for the first year, increasing by Rs.8000 in the
second and
subsequent
years. If we now have a machine of type A, should we replace it with B? Assume
that
both
machines have no resale value and future costs are not discounted.
8.
A firm is considering replacement of an equipment whose first cost is Rs1750
and the scrap value is
negligible
at any year. Based on experience, it was found that the maintenance cost is
zero during
the
first year and it increased by Rs100 every year thereafter(a) when should the
equipment be
replaced
if i = 0% (b) when should the equipment be replaced if I =12%
Unit V
1.
Explain the various methods of depreciation
2.
Explain the procedure to adjust inflation and discuss the determination of
economic life of assest.
3.
How will you evaluate the public alternatives? Explain in detail.
4.
Explain and distinguish between moderate, galloping and hyperinflation. How do
these kinds of
inflation
affect the economic growth of a nation?
5.
The cost of a machine is Rs160000 and its scrap value is Rs40000. Estimated
life 5 years. Using sum
of
years digits method, determine depreciation charges for each year
6.
A company purchased machinery for Rs100000. Its installation costs amounted to
Rs10000. Its
estimated
life is 5 years and the scrap value is Rs5000. Calculate the amount & rate
of depreciation.
7.
The alpha drug company has just purchased a capsulating machine for Rs.2000000.
The plant
engineer
estimates that the machine has a useful life of 5 years and a salvage of
Rs.25000 at the end
of
its useful life. Compute the depreciation schedule for the machine by each of
the following
depreciation
methods. (a) Straight line method of depreciation. (b) Sum of the years digit
method of
depreciation.
8.
Discuss (a)declining balance method of depreciation (b)sinking fund method of
depreciation.
MG6863 Engineering Economics - Part B ( impotent 16 mark ) - Download PDF >>
Anna University ,Chennai
Semester : Eight
Department Of Mechanical Engineering
Subject code : MG6863
Subject name : Engineering Economics
Edition : 2017
Question Bank
MG6863 Engineering Economics - Question Bank - Download PDF >>
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