Faculty of Engineering and Technology
Department Electronics and Programme [Link] in ECE
Communication
Engineering
Semester/Batch 5th/2018
Engineering Economics and Cost
Course Code 19ECL308A Course Title
Estimation for Electronic Engineers
Course Leader Viswanath K. Reddy
Assignment – 2
Reg. No. Name of
Student
Declaration
The assignment submitted herewith is a result of my own investigations and that I have
conformed to the guidelines against plagiarism as laid out in the Student Handbook. All sections
of the text and results, which have been obtained from other sources, are fully referenced. I
understand that cheating and plagiarism constitute a breach of University regulations and will be
dealt with accordingly.
Signature of the Student Date:
Course Marks Tabulation
Component- CET B First Second
Remarks Remarks
Assignment Examiner Examiner
Q.1
Q.2
Marks (out of 25 )
Signature of First Examiner Signature of Second Examiner
Course preamble:
This course deals with principles of engineering economics and cost estimation of systems.
Students are taught the principles of economics, scarcity, supply, demand and time value of
money in addition to few other topics. They are also facilitated to understand the
importance of time value of money and taking decision in scenarios having financial
implications. Students will be able to identify and evaluate better economic choices.
Question 1 (2 + 4 + 4 = 10 Marks)
One should be aware of time value of money while comparing any two options with
financial implications. By attempting this part, the student will be able to appreciate the
time value of money and make judicious decisions.
One particular chit fund operates in the following manner.
Total amount - 1 Lakh
Total Members- 20 members
Each member will pay - 5000/- pm
If bidder - to pay 1000/- extra every month from the next month of bid
Operator Charges - Rs 5000/-pm
How it works:
Each month, names of all members is made a LOT
ONE name is picked from the LOT(Winner)
The WINNER will be given the Chit amount(minus Operator Charges).
Every WINNER has to pay Rs 6000/- from the following month, till the last month.
1. Write the cash flow diagram, assuming you win the money in the 0th month.
2. If you remain invested in such a scheme till the end, compute the interest rate
fetched by this scheme(pa) and compare with a FD scheme fetching 6%pa
compounded monthly.
3. Assume you win the money in the 0th month. You have no expenses and can invest
entire amount in some instrument, Suggest TWO possible avenues in which you
would invest so that you would get higher returns than that you would have got by
staying invested till the end.
Note:Submission should be handwritten for this part
Question 2 (2 +2 + 4 + 5 + 2 + 2 + 2 = 15 Marks)
There is no dearth of problems in the society. Solution providers are scarce or costly. If you
can develop an attitude to identify a problem which needs to be addressed, you will be in
great demand as a solution provider. Attempting this part gives you an opportunity to
explore in this direction.
1. Identify one problem which you feel needs immediate attention (by you or a family
member or friend or children or etc)
2. Who is undergoing the trouble due to the identified problem and in what way, Explain in
your own words.
3. What are the existing solutions available to the identified problem, Why do you think a
new solution is required.
4. How can this problem be solved according to you? Explain in brief with a detailed block
diagram or flow chart.
5. Justify how your solution is unique and why it should be funded.
6. What resources do you require for solving this problem.
7. Develop a Gantt chart for your project.
