SHIVANI COLLEGE OF ENGINEERING AND TECHNOLOGY

TIRUCHIRAPALLI 620009
DEPARTMENT OF COMPUTER SCIENCE AND ENGINEERING
MG2452 ENGINEERING ECONOMICS AND FINANCIAL ACCOUNTING
INTERNAL ASSESSMENT TEST -2
Date:

Time: 1.30 Hrs

Max.Marks: 50

PART- A (9 X 2 = 18 Marks)
1. Define Demand.
2. What is elasticity of demand?
3. What is cross elasticity of demand?
4. What is market equilibrium?
5. What is supply?
6. What is ratio?
7. What is cash flow statement?
8. What is demand forecasting?
9. What is working capital?

PART- B (2 X 16 = 32 Marks)
10. Explain the steps involved demand forecasting.
(OR)
11. Explain the elasticity of demand in detail.
12. Prepare fund flow statement from the balance sheet..
(OR)
13. A company has to choose one of the following two mutually exclusive projects.
Investments required for each project is Rs.15000. Both the projects have to be depreciated
on straight line basis. The tax rate is 50%. Calculate Payback period and Net Present Value.

Year
1
2
3
4
5

Profit before depreciation

Project A
Project B
Rs.
Rs.
4200
4200
4800
4500
7000
4000
7000
5000
2000
10000