DIRECTIONS Solve the given problems completely. Q1. a List down different type of interests and their related formulae. [5] b. Collect one example for each and solve it showing appropriate steps [15] Q2. a. Explain why depreciation is important in Economic analysis [10] b. A machinery worth Rs 30,000 has a lifetime of 10 years and a salvage value of Rs. 1800. Calculate the accumulated depreciation(Dn) on the 10th year and book value at the end 104 year annually if interest rate is 9% using one of the Depreciation methods Show the calculation in a table [10] Q3.In automobile industry there is a growing demand for electrical vehicles, in the present era, conduct an analysis on any commercially available electrical vehicle being used, consider intial investment, annual costs operation costs/maintenance costs), salvage value, revenue if any with usage and find out whether buying an electric car is preferable or not over a conventional automobile which runs on fuel (prepare estimate for conventional fuel run car and electrical car and evaluate which one is profitable using any BCR Method). Discuss with an inference which one is preferred (Prepare for 5 years) [20] Q4. The cash flow details of a public project is as follows Initial cost/investment =BD 250000 Annual benefits/revenues =BD 120000 Worth of annual cost =BD 12,000 I Salvage value BD 150000 Interest rate per year = 8% and useful lie = 30 Years Use the three project evaluation methods( PW FW AW) and put your decision after every solution Prepare the cash flow diagram [30] Evaluation Rubrics: Qiu. Complete and correct tabulation carries 6 marks Only few parts have formula cries 4 marks Only few formulae are correct 2 marks No answer O marks Q2 Complete and correct tabulation carries 26 marks Majority of the answer a has correct formulae and calculation 25 to 15 marks Only formulae is correct and calculation are incorrect 14 to 10 marks Only few formulae is correct and few calculation are correct 9 to 1 marks No answer O marks Q3 Complete and correct tabulation carries 16 marks Majority of the answer a has correct formulae and calculation 15 to 10 marks Only formulae is correct and calculation are incorrect 9 to 5 marks Only few formulae is correct and few calculation are correct 4 to 1 marks No answer O marks Q4 Complete and correct tabulation carries 26 marks Majority of the answer a has correct formulae and calculation 25 to 15 marks Only formulae is correct and calculation are incorrect 14 to 10 marks Only few formulae is correct and few calculation are correct 9 to 1 marks No answer O marks