BAHRIA UNIVERSITY (KARACHI CAMPUS)

Department of Electrical Engineering

Engineering Economics and Management – (HSS-411)

Quiz # 1
Class & Section: BEE – 8 (A, B, C & D) Total Marks: 10
Course Instructor: Engr. Asif Raza Given Date: 20/06/2020
Student’s Name: ____________________ Submission Deadline: 26/06/2020
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Q.N0.1 [CLO-3(C3)] (02)

You purchase a home with a Rs. 180,000 mortgage at 4% for 30 years with monthly payments. What
will the remaining balance on your mortgage be after 5 years?

Q.N0.2 [CLO-2(C2)] (03)

An electronic testing device is to be DDB depreciated. It has an initial cost of Rs. 25,000 & an
estimated salvage of Rs. 2500 after 12 years.

(a) Calculate the depreciation & book value for years 1 & 4.
(b) Calculate the implied salvage value after 12 years.

Q.N0.3 [CLO-4(C4)] (02)

If the Pakistan Cables has an annual gross income of Rs. 2,750,000 with expenses & depreciation
totaling Rs. 1,950,000.
(a) Calculate the company’s taxable income.
(b) Income taxes?
(c) Average tax rate?
(d) Marginal tax rate?

Q.N0.4 [CLO-3(C3)] (03)

Rastek Technologies is a manufacturer of miniature fittings and valves. Over a 5 year period, the
costs associated with one product line were as follows: Initial cost of Rs. 30,000 & annual costs of
Rs. 18,000. Annual revenue was Rs. 27,000 & the used equipment was salvaged value Rs. 4,000.
What rate of return did the company make on this product?

____________________ Best of Luck  ____________________