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C1166 Pages 2

Estimate GDPmp and GNPfc from the following data(given in crores) according
to the expenditure method. Private final consumption expenditure(C) = 6000,
Investment(I)=4000, Government consumption expenditure(G)=1400, Net-
exports(X-M)=600, Net indirect tax =500, Net factor income from abroad = 1000
In a three sector model what are the money flows between the government sector
and firms, and the government sector and household sector.
What is inflation? What are the monetary policy measures to control inflation
PART C

Answer any four questions, each carries10 marks.
Suppose the initial cash outlay on a project is Rs.1,00,000 and life of the project
is 5 years. The salvage value is Rs.6000 and the annual income after tax and
depreciation are Rs.6000, 10000,14000, 18000 and 22000 from year | to 5
respectively. Estimate ARR.
What is a decision tree?
The initial investment on a project is Rs.50000 and the cost of borrowing is 10%.
If the cash flows after tax are Rs.30000, 20000 and 10000 from year 1 10 3,
estimate NPV of the project.
Give any two merits and demerits of NPV method

What is savage principle? A pay off matrix is given below. Which alternative
will be selected according to the savage principle or minimax regret?(estimate

regrets)

Possible future demand

Alternatives 1001/0012 ताशा
Small facility 15 15 15
Medium facility 14 17 17
Large facility 8 9 19

Explain accounting equation?

Give any two uses and limitations of a balance sheet.

Explain any three qualitative methods of demand forecasting.

Give any four advantages and disadvantages of foreign capital

What are the major differences between a money market and capital market?

Distinguish between direct tax and indirect tax.

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