Download VTU BE 2020 Jan ME Question Paper 17 Scheme 5th Sem 17ME51 Management and Engineering Economics

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17ME51
Fifth Semester B.E. Degree Examination, Desei;1401 n.2020

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Management and Engineering Economics
Time: 3 hrs. Max. Marks: 100
Note: 1. Answer any FIVE full questions, choosing ONE full question from each module.
2. Use of Interest factors table is permitted.
Module-1

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1 a. Define meaning of Management and explain characteristics of Management. (06 Marks)
b. Discuss different Levels of Management. (06 Marks)
c. Briefly explain the early management approaches. (08 Marks)
1.
OR

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... v 2 a. Discuss the importance and purpose of planning process.
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b. With the help of block diagram, explain Hierarchy of plans.

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3 a. List and explain in brief the Principles of Organization.

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td) 11
c .? b. Discuss the need of Committees in an organization with classification.
(10 Marks)
(10 Marks)

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(14 Marks)
(06 Marks)
9
OR
2

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4 a. Discuss the three types of leadership styles mentioning their advantages and disadvantages.
(10 Marks)
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b.

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With the aid of block diagram, explain Maslow's Hierarchy of Needs theory. (10 Marks)
a)
Module-3
5 a. Engineers are now expected not only to generate novel technological solution but also to
make skillfull financial analysis of the effects of implementation ? discuss. (06 Marks)

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- b. State and explain the law of supply and demand mentioning the factors influencing it.
(08 Marks)
c.
Determine the effective interest rate for a nominal annual rate of 6% that is compounded:
(i) Semi-annually (ii) Quarterly (iii) Monthly (iv) Daily (06 Marks)

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OR
6 a. Explain time value of money assuming amount of your choice and draw the cash flow
diagram. (08 Marks)
b. A person wishes to have a future sum of Rs.1,00,000 for his son's education after 10 years
from now. What is the single payment that he should deposit now so that he gets desired

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amount after 10 years? The bank gives 15% interest rate compounded annually. (04 Marks)
c. A celebrity is at the height of his career. He wants to invest Rs.10 lakhs from the end of this
year and follow it up with 9 lakhs, 8 lakhs and so on for the next five years, when his income
would go on diminishing. Find the maturity amount 6 years later if a film producer agrees to
pay him 15% rate of interest, compounded annually. (08 Marks)

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Module-4
7 a. An engineer has two bids for an elevator to be installed in a new building. The details of the
bids for the elevators are as follows:
Bid Engineer's estimates
Initial cost

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(Rs.)
Service life
(years)
Annual Operations &
Maintenance Cost (Rs.)

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Alpha Elevator Inc.
Beta Elevator Inc.
4,50,000
5,40,000
15

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15
27,000
28,500
Determine which bid should be accepted, based on the present worth method of comparison
assuming 15% interest rate, compounded annually.

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(10 Marks)
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17ME51
Fifth Semester B.E. Degree Examination, Desei;1401 n.2020

--- Content provided by​ FirstRanker.com ---

Management and Engineering Economics
Time: 3 hrs. Max. Marks: 100
Note: 1. Answer any FIVE full questions, choosing ONE full question from each module.
2. Use of Interest factors table is permitted.
Module-1

--- Content provided by‍ FirstRanker.com ---

1 a. Define meaning of Management and explain characteristics of Management. (06 Marks)
b. Discuss different Levels of Management. (06 Marks)
c. Briefly explain the early management approaches. (08 Marks)
1.
OR

--- Content provided by​ FirstRanker.com ---

... v 2 a. Discuss the importance and purpose of planning process.
t.,0
,;
tu
b. With the help of block diagram, explain Hierarchy of plans.

--- Content provided by FirstRanker.com ---

ect ?
C. r
-
Module-2
=

--- Content provided by​ FirstRanker.com ---

...--
d

1 '''
3 a. List and explain in brief the Principles of Organization.

--- Content provided by FirstRanker.com ---

td) 11
c .? b. Discuss the need of Committees in an organization with classification.
(10 Marks)
(10 Marks)

--- Content provided by‍ FirstRanker.com ---

(14 Marks)
(06 Marks)
9
OR
2

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4 a. Discuss the three types of leadership styles mentioning their advantages and disadvantages.
(10 Marks)
o
T .:
b.

--- Content provided by⁠ FirstRanker.com ---

With the aid of block diagram, explain Maslow's Hierarchy of Needs theory. (10 Marks)
a)
Module-3
5 a. Engineers are now expected not only to generate novel technological solution but also to
make skillfull financial analysis of the effects of implementation ? discuss. (06 Marks)

--- Content provided by‌ FirstRanker.com ---

- b. State and explain the law of supply and demand mentioning the factors influencing it.
(08 Marks)
c.
Determine the effective interest rate for a nominal annual rate of 6% that is compounded:
(i) Semi-annually (ii) Quarterly (iii) Monthly (iv) Daily (06 Marks)

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OR
6 a. Explain time value of money assuming amount of your choice and draw the cash flow
diagram. (08 Marks)
b. A person wishes to have a future sum of Rs.1,00,000 for his son's education after 10 years
from now. What is the single payment that he should deposit now so that he gets desired

--- Content provided by‍ FirstRanker.com ---

amount after 10 years? The bank gives 15% interest rate compounded annually. (04 Marks)
c. A celebrity is at the height of his career. He wants to invest Rs.10 lakhs from the end of this
year and follow it up with 9 lakhs, 8 lakhs and so on for the next five years, when his income
would go on diminishing. Find the maturity amount 6 years later if a film producer agrees to
pay him 15% rate of interest, compounded annually. (08 Marks)

--- Content provided by‌ FirstRanker.com ---

Module-4
7 a. An engineer has two bids for an elevator to be installed in a new building. The details of the
bids for the elevators are as follows:
Bid Engineer's estimates
Initial cost

--- Content provided by​ FirstRanker.com ---

(Rs.)
Service life
(years)
Annual Operations &
Maintenance Cost (Rs.)

--- Content provided by‍ FirstRanker.com ---

Alpha Elevator Inc.
Beta Elevator Inc.
4,50,000
5,40,000
15

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15
27,000
28,500
Determine which bid should be accepted, based on the present worth method of comparison
assuming 15% interest rate, compounded annually.

--- Content provided by​ FirstRanker.com ---

(10 Marks)
1 of 2
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o
? ?=

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b. A person owns a corner plot. He must decide which of the several alternatives to select in

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trying to obtain a desirable return on his investment. After much study and calculation, he
decides that two best alternatives are given in the following table:
Particulars Alternative I Alternative II
First cost (Rs.) 20,00,000 36,00,000
Annual property taxes (Rs.) 80,000 1,50,000

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Annual Income (Rs.) 8,00,000 9,80,000
Life of building (years) 20 20
Salvage Value (Rs.) 0 0
Evaluate the alternatives based on the Future Worth Method at i = 12%. (10 Marks)
8 a.

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b.
c.
OR
Define the following terms: (i) MARR (ii) IRR (iii) ERR
What are the clues for IRR calculations?

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Farmhouse can be purchased for Rs.90,000 and the expected resale value
Rs.60,000. if the annual rental income is Rs.11,800 and expenses Rs.4700,
rate of return earned on this farmhouse?
(05 Marks)
(05 Marks)

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after 20 years is
what will be the
(10 Marks)
Module-5
9 a. Explain how selling price is determined for a product with a block diagram.

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b. The expenditure incurred in manufacturing a machine is as follows:
1. Material consumed Rs.55,00,000
2. Indirect factory wages Rs.8,00,000
3. Director's fee Rs.3,00,000
4. Advertisement Rs.1,00,000

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5. Net profit Rs.1,20,000
6. Depreciation on sales department car Rs. 11,000
7. Printing & Stationary Rs.2500
8. Depreciation of plant Rs.45,000
9. Direct wages Rs.6,50,000

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10. Factory rent Rs.60,000
11. Telephone & postage charges Rs.15,000
12. Gas & Electricity Rs.50,000
13. Office salaries Rs.2,10,000
14. Office rent Rs.50,000

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15. Showroom rent Rs.1,50,000
16. Salesman commission Rs.26,500
17. Sales dept. car expenses Rs.15,000
Estimate the selling price.
(06 Marks)

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(14 Marks)
OR
10 a. List and explain five methods of depreciation. (10 Marks)
b. Discuss the various causes of depreciation. (05 Marks)
c. A company has purchased an equipment whose first cost is Rs.1,00,000 with an estimated

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life of Eight years. The estimated salvage value of the equipment at the end of its life time is
Rs.20,000. Determine the depreciation charge and book value at the end of various (eight)
years using straight line method of depreciation. (05 Marks)
2 o f 2 .
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