Jawaharlal Nehru Technological University Kakinada 2009-1st Sem B.Tech Code No: V3101/R07 Set No1 III Regular s, MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS ( Common to Civil Engineering

Code No: V3101/R07 Set No. 1
III B.Tech I Semester Regular Examinations, November 2009
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
( Common to Civil Engineering, Mechanical Engineering, Electronics &
Communication Engineering, Electronics & Computer Engineering,
Instrumentation & Control Engineering and Bio-Technology)
Time: three hours Max Marks: 80
ans any 5 ques.
All ques. carry equal marks
? ? ? ? ?
1. State the legal regulations of Demand. discuss why the demand curve slopes downwards. Are
there any exceptions to the law? [16]
2. What is meant by Elasticity of demand. How do you measure it? [16]
3. (a) "To reach Breach even position means to reach zero point" In the light of
the above statement discuss how output, cost and revenue relationship can be
established.
(b) elaborate its limitations?
(c) Use suitable diagrams. [8+4+4]
4. 'A competitor under conditions of perfect competition is only price taker and quan-
tity adjustor' - In the light of the above statement, explain clearly the important
features of perfect competition and how price output decisions can be taken. [16]
5. elaborate the factors that affect the option and form of a business organization?
[16]
6. subsequent is the info in respect of the 3 projects A,B and C. [16]
Item A B C
Initial Investment ( in Rs) 60,000/- 2150/- 4,25,000/-
Annual Cash Flow (in Rs) 12,000/- 1500/- 2,51,000/-
Life Period (in years) 15 three 20
If the cost of capital for all the 3 projects is 10%, rank them using NPV method
and simple pay back method.
7. discuss the subsequent concepts and illustrate their treatment with imaginary data.
[16]
(a) Depreciation
(b) Prepaid expenses
(c) Reserve for bad and doubtful debts
(d) Income received in advance.

Earning:   Approval pending.