Financial Engineering & Economics M.Tech Model Question Paper : mgu.ac.in

Name of the College : Mahatma Gandhi University
Department : Mechanical Engineering
Subject Code/Name : MMEPI 106.3 / MMEMP 106.3/FINANCIAL ENGINEERING AND ECONOMICS
Sem : I
Website : mgu.ac.in
Document Type : Model Question Paper

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Financial Engineering & Economics :

M. TECH. DEGREE EXAMINATION, MODEL QUESTION PAPER – II :
First Semester :
Branch: Mechanical Engineering

Related : MGU Metrology & Computer Aided Inspection M.Tech Model Question Paper : www.pdfquestion.in/5069.html

Specialisation: Production and Industrial Engineering / Advanced Manufacturing and Production Management
MMEPI 106.3 / MMEMP 106.3 FINANCIAL ENGINEERING AND ECONOMICS
(Regular – 2013 Admissions)
Time: Three Hours
Maximum: 100 Marks
(Answer all questions)
1. (a) Explain the functions of the finance manager in a large company. (10 marks)
(b) What is meant by the agency problem? (5 marks)

(c) An investment project involves a current outlay of Rs.4, 00,000.It returns an annual cash inflow of Rs. 80,000 for seven years. Calculate (i) the payback period of the project? (ii) the internal rate of return. (10 marks)
Or

2. (a) Explain the major objectives of financial management. (5 marks)
(b) Explain the process of capital budgeting (10 marks)

(c)The cash flows associated with two projects are as follows.
Project A(Rs) Project B(Rs) :
Investment 14000 12000
Cash inflow in year 1 5000 8000
Cash inflow in year 2 6000 5000
Cash inflow in year 3 7000 2000
Cash inflow in year 4 7000 1000
Calculate the net present value of each project at a discount rate of 12 percent. (10 marks)

3. (a) Explain the role of equity capital and debenture capital in the long term financing decision of a firm. (15 marks)
(b) What are the factors affecting the capital structure? Explain the net operating income approach regarding capital structure. (10 marks)
Or

4. (a) Explain the functions performed by the major institutions in the Indian Financial System. (15 marks)
(b) What are the different forms of dividends? Explain Walters’s model with regard to dividends. (10 marks)

5. (a) What is utility? Explain the law of diminishing marginal utility. (10 marks)
(b) What are indifference curves? Mention their properties. (5 marks)
(c) Explain the income effect of a price change. (10 marks)
Or

6. (a) Explain consumers surplus. (5 marks)
(b)Explain the relevance of the budget line of a consumer (5 marks)
(c) Explain the three types of elasticities of demand. Explain the methods of measuring price elasticity. (15 marks)

7. (a) Distinguish between implicit and explicit costs. (5 marks)
(b) What is monopolistic competition? Explain the determination of price and output under monopolistic competition. (10 marks)
(c)What is oligopoly? State the reasons for the kink in the demand curve of a firm under oligopoly. (10 marks)
Or

8. (a) Bring out the relationship between AR and MR curves with the help of a diagram (5 marks)
(b) What are the features of perfect competition? Explain the determination of price and output under perfect competition. (10 marks)
(c) What is monopoly? Explain the determination of price and output under monopoly. (10 marks)

M. Tech. Degree Examination, Model Question Paper – I :
First Semester
Branch : Mechanical Engineering
Specialisation : Production and Industrial Engineering / Advanced Manufacturing and Production Management
MMEPI 106.3 / MMEMP 106.3 Financial Engineering And Economics : (Regular – 2013 Admissions)
Time : Three Hours
Maximum : 100 Marks
(Answer all questions)
1 (a) Explain the major financial decisions taken in a firm. (5 marks)
(b) What are the factors influencing working capital management? (10 marks)

(c) A company makes cash investments of Rs.400000 at time Zero and  Rs.600000 in the first year. It expects after tax inflows of 150000 in year two, Rs.200000 in year three,250000 in year four and Rs.300000 each year through year seven.(i)What is the payback period of the project?(ii)If IRR is 12 percent, What is the NPV of the project? (10 marks)
Or

2 (a) Explain the major objectives of financial management. (5 marks)
(b) Explain the process of capital budgeting (10 marks)

3 (a) What are the major sources of long term finance? Explain.  (15 marks)
(b) What is capital structure? Explain the factors affecting the capital structure of a  firm. (10 marks)
Or
4 (a) Explain the factors affecting the paying of dividends in a company. Explain the Modigliani-Miller hypothesis with regard to dividends.  (15 marks)
(b) Briefly describe any five financial instruments. (10 marks)

5 (a) Explain consumers equilibrium with the help of indifference curves. (10 marks)
(b)Explain price and income elasticity of demand. (10 marks)
(c)Explain the substitution effect of a price change. (5 marks)