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If the cost for a similar plant with 2,000 ton per day capacity was ` 9,00,00,000, estimate the value of cost-capacity exponent. For estimating the total plant expansion cost, we can use Equation (15.5). This means that variables X and Y vary charge and play music iphone 7 together 86.87% of the time. The coefficient of correlation ranges in value between – 1 and 1 . That is, we are 95% confident that the true value of b lies between 0.42 and 3.58. This interval of the value of b is called confidence interval.

The variable cost per unit is ` 100 and the fixed cost is ` 1,20,000. Where Px is the price of the product x, I is the per capita income and Pc is the price of the related products. Determine what effect a price increase of product x would have on total revenue. Determine how the sale of the product x would change during period of rising incomes. What will be the impact on the sale of the product x if price of the related products is increased. Assume that the initial values of Px, I and Py are ` 20, ` 20,000 and ` 12 respectively.

Computation of float of activities of a network enables the project management to identify the activities that are important and those which are not. Activities that do not possess any float, i.e., those having zero float are known as critical activities. These critical activities, indeed, determine the project duration or project completion time. The activities that possess certain amount of positive float are called non- critical activities. Float also enables diversion of resources from non-critical activities to critical activities so as to complete the project by its scheduled duration. 10 Economics Study Considering Inflation 10.1 Introduction Inflation is observed nearly every day in personal and professional life.

There is no change in size or age-composition of the population. There is no change in the range of goods available to the consumers. There is no change in income of the consumer and the community. 1.3 Need to Study Economics Studying economics gives insights into the general environment of resource allocation decisions, opportunity costs and project evaluation which are crucial in many areas. Often, these insights are not obvious, and can be counter-intuitive to those who don’t apply economic reasoning.

At the right-hand side is the elementary function that should be fulfilled by this solution. Here, in the example under consideration, the overhead projector should adequately “show diagram”, however it will accomplish the “teach student” function only to some extent. The right-hand side scope line is positioned to the left-hand side of a function which provides suitable interface to the solution under study.

Program and action plans are established to generate and apply the choices that are obtained from analysis phase. Techniques used here are in the realm of the production and project management. The implementation of VE change-proposals is observed and followed up in order to offer support, clear any misunderstandings and confirm that the recommended actions are achieved. Compute the expected project completion time. What should be the due date to have 0.9 probability of completion?

By each of the methods indicated below, calculate the book value of a book-binding machine at the end of 5 years if the machine originally costs `1,50,000 and had an estimated salvage value of `10,000. The term (B – S) is referred to as the depreciable value of an asset. Examples 8.1 and 8.2 illustrate depreciation calculation by SL method. Example 8.1 A small equipment has first cost of `20,000 and a 10–year estimated life. The estimated salvage value of the equipment is zero at the end of 10 years. Calculate depreciation cost during the fifth year, cumulative depreciation cost through the fifth year, and book value at the end of fifth year.

Let us take an example of a classroom transparency projector. The chosen characteristic was to “show diagram”. The rational questions framed was “Why do we show a diagram? ” and the response was, “To teach students.” How is the “show diagram” achieved? “By reflecting image.” How do we attain the task “reflect image?

In order to make distinction, downward arrows represent expenses . 4.2 depicts a receipt at the end of year 1 and equal disbursements at the end of years 2, 3 and 4. The objective of the evaluation phase is to pre-screen the large list using various information reduction techniques. The highest-scoring alternatives that emerge from the pre-screening are subjected to further evaluation and discriminating value measurement techniques as those used in the State 1 analysis of the information phase. Value measurement in this phase referred to as State 2, or further state, measurement. In the implementation phase, a report is generated to describe the study, document inferences and specify the proposal for the decision makers.