Q.No. 1 Mr Ahmad & Co want to start a consultancy firm for which the estimated cost and the return from the said business venture are given below. The rate of return on the investment is agreed to be 12.5%. Find the Net Present Value to the business venture that it will be financially feasible or some other alternatives may be undertaken. (20) (CLO3, PLO11)

Costs (in rupees)

Category	Year 0	Year 1	Year 2	Year 3	Year 4
Lease hold Land	15000	15000	18000	20000	25000
Leasehold improvements	20000	15000	12000	10000	9000
HR Expenditures
Salary, including benefits Recruitment costs Orientation and training	15000 1100 3000	75000 11250 3000	80000 10000 3000	85000 10000 3000	90000 0 3000
Purchase of workstations.
Software Hardware	10000 50000	16000 50000	10000 10000	20000 10000	25000 20000
Construction Cost	100000	150000	50000	10000	10000

Benefits

Category	Year 0	Year 1	Year 2	Year 3	Year 4
Revenue from Trainings provided	5000	90000	100000	150000	250000
Sales Revenue from Software Developed	45000	45000	130000	170000	100000
Revenue from Projects Completed	50000	58000	165000	285000	350000

Q.No.2. The science of economics focus on want - effort - satisfaction. Keeping in view this phenomena, describe the criticism made on Welfare definition of Robbins and also describe your understanding regarding the Growth definition. (10) CLO1, PLO9

Q.No.3. What is the relationship of demand and supply with the price? How price effect the demand and supply curve? Explain your answer with the help of a graph showing the effect of change in price and quantity demanded on the demand and supply curves. (20)