GATE PI topic:engineering-economy-costing PYQs & Answers — Page 2

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Questions 11–14 of 14. Imported answers require independent review unless marked reviewed.

Topic practice 14 questionsPage 2 of 2

A company invests Rs.50 thousand in assets. The initial investment is Rs.30 thousand with two subsequent investments of Rs.10 thousand each at the end of 1st year and 2nd year. The useful life of the assets is 10 years with no salvage value at the end. If the interest rate is 10% and the minimum attractive rate of return (MARR) is 12%, the annual capital recovery and return (CRR) in thousands of Rs. is

Your answerChoose one option.

8.38

7.06

5.74

3.10

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A machine is procured at a price of Rs. 4700 with a 2-year warranty. After two years, the annual maintenance cost (AM) in Rs. is given by the following formula:

, where i is the number of years elapsed since the machine was purchased. Neglect the scrap value of the machine, inflation, interest, etc. For minimizing the average cost, the machine should be replaced at the end of the year

Your answerChoose one option.

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The breakeven point of a manufacturing company is 5000 units. The fixed cost is Rs. 20000 and the variable cost per unit is Rs. 20. The selling price per unit (in Rs.) of the product at this breakeven point is _____

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A hose coupling manufacturing company has production capacity of 2,500 units per year. The unit selling price of the item is Rs. 150. The fixed cost of production is Rs. 80,000 and variable cost of production per unit is Rs. 70. If the company wishes to achieve a profit of Rs. 20,000 during the calendar year, then the minimum quantity to be produced is

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GATE PI topic:engineering-economy-costing PYQs

Question 37

Question 30

Question 48

Question 50