MG6863 Engineering Economics Question Bank

MG6863 Engineering Economics Question Bank Regulation 2013 Anna University free download. Engineering Economics MG6863 Question Bank pdf free download.

Sample MG6863 Engineering Economics Question Bank:

Part A

1. State the law of supply and demand.

2. What is sunk cost?

3. Define value engineering.

4. What is effective interest rate?

5. What is future .worth? (mg6863 engineering economics question bank)

6. State· the applications of rate of return method.

7. Define economic life of an asset.

8. Distinguish betw. een challengers and defenders.

9. Define depreciation.

10. State the inerits.of annuity method of depreciation.

11. Give the law of demand. (mg6863 engineering economics question bank)

12. What is economic efficiency?

13. Define Value Engineering.

14. Explain the concept of Discounting.

15. What are the methods of cash flow? (mg6863 engineering economics question bank)

16. What is annual equivalent method of comparing alternatives?

17. List out the types of replacement problem.

18. Define prevention maintenance (PM).

19. Write short notes on: Depreciation. (mg6863 engineering economics question bank)

20. Differentiate Straight line method of depreciation and declining balance method of depreciation..

Part B

1. Two years ago, a machine was purchased at a cost of Rs. 2,00,000 to be usefui for eight years. Its salvage at the end ofits life is Rs. 25,000. The
annual maintenance cost is Rs. 25,000. The market value of the present
machine is Rs. 1,20,000. Now, a new machine to cater to the need of the present machine is available at Rs. 1,50,000 to be useful for six years. Its
annual maintenance cost is Rs 14,000. The salvae value of the new
machine is Rs. 20,000. Using an interest rate of 12%, find whether it is worth replacing the present machine with the new machine. (16) (mg6863 engineering economics question bank)

2. A person is planning for his retired life. He has 10 more years of
service. He would like to deposit Rs. 8,500 at the end of the first
year and thereafter he wishes to deposit the amount with an annual decrease of Rs. 500 for the next 9 years with an interest rate of 15%. Find the total amount at the end of the lOth year of the above series. (mg6863 engineering economics question bank)