20.

(a) Explain Rate of Return method and its

advantages and disadvantages (6 Marks)
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B.Tech. DEGREE EXAMINATION, NOVEMBER 2019.
(b) A Project requires as investment of
Rs 5,00,000 and has a scrap value of
Eighth Semester
Rs. 20;000 after 5 years. It is expected to
yield profits after depreciation and taxes ECE
d ring the 5 years amounting to Rs 40,000,
Rs 60,000, Rs. 70,000, Rs. 50,000 and INDUSTRIAL MANAGEMENT AND ENGINEERING
Rs. 20,000. Calculate the average rate on the ECONOMICS
investment. (5 Marks)
(2013 - 2014 onwards regulation)

Time: Three hours Maximum: 75 marks

SECTION A - (10 x 2 = 20 marks)

Answer ALL the questions

All questions carry equal marks

1. Write a note on Economic efficiency

2. Define PN ratio

3. What is value analysis and state its advantages

.4. What is Cost dominated cash flow diagram

5. List out five reasons for providing Depreciation

6. Define the term evaluation of Public alternatives

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7. What is Determination of economic life of Asset? 15. Enumerate the methods of calculating
Depreciation with its merits and demerits
8. What are the functions of Management? Or
9. DIfferentiate between fixed cost and variable cost 16. Explain Inflation Adjusted decision and
procedures to adjust Inflation
10. Mention the two types of source of finance? 17. Explain the Henry Fayol's 14 Principles of
Management
SECTION B - (5 x 11 = 55 marks) Or
Answer ALL questions, ONE from each unit 18. Highlight the types of Organizations with its
characteristics, merits and demerits.
All questions carry equal marks 19. The following information are grven for two
companies.
11. Explain about the elements of cost and its
classification J.Ltd C. Ltd

Rs Rs
Units produced and sold 20,000 20,000
12. Elucidate in detail the Equal payment Series
methods with suitable examples Revenue 2,50,000 2,50,000
Fixed costs 90,000 40,000
13. Discuss the Present Worth method with cost and
Revenue dominated Cash flow diagram with Operating income 69,000 65,000
suitable examples
Variable costs 91,000 1,45,000
Or Find out the Break - Even point of each company
both in units as well as volume
14. Explain the Annual Equivalent method with
illustrative example Or

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