Birla Institute of Technology (BIT Mesra) 2007 PROJECT APPRAISAL - Question Paper

Birla Institute of Technology & Science, Pilani

Distance Learning Programmes Division

Second Semester 2006-2007



Mid-Semester Test

(EC-1 Regular)



Course No. : ET ZC414

Course Title : PROJECT APPRAISAL

No. of Pages = 1

No. of ques. = six
Nature of examination : Closed Book

Weightage : 40%

Duration : two Hours

Date of examination : 04/02/2007 (FN)

Note:

1. Please follow all the Instructions to Candidates provided on the cover page of the ans book.

2. All parts of a ques. should be answered consecutively. every ans should begin from a fresh page.

3. Mobile phones and computers of any type should not be brought inside the exam hall.

4. Use of any unfair means will outcome in severe disciplinary action.



Q.1. What is capital investment? Points out its relevance and difficulties. (5)



Q.2. Examine different process of Capital budgeting and highlights the criterion to select/ judge the worthwhile of a project? (5)



Q.3. elaborate the means of finance to handle the cost of a project? (5)



Q.4. Suppose the known investment cost for 500 units of capacity for the manufacturer of a certain item is Rs. 1, 000, 000. What will be the investment cost for 10, 000 units of capacity, if the capacity cost is 0.6 and 0.7 respectively. (5)



Q.5. Suppose you have decided to deposit Rs. 30, 000 per year in your public provident fund account for 30 years. What will be the accumulated amount in your public provident account at the end of 30 years, if interest rate is 11%, 15% and 20% respectively? If the years reduce to 20, what will be the effect on above interest rates, where amount of deposit remain constant. (10)



Q.6. The demands of the Maruti cars are provided beneath over the 13 years; obtain out the projection its demand in the next 5 years. [Apply pattern projection method only] (10)



Year
Demand

1
10

2
13

3
14

4
17

5
18

6
18

7
19

8
20

9
22

10
23

11
22

12
24

13
25

Earning:   Approval pending.