INSTRUCTIONSa.

Students are re6uired t& su#mit a'' three assi(nment setsA

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i & n s 1 0 #.T&ta' +ei(hta(e (i9en t& these assi(nments is 30<- OR 30 Mar=s
%.A'' assi(nments are t& #e %&mp'eted as typed in +&rd>pd?-d.A'' 6uesti&ns
are re6uired t& #e attempted-e.A'' the three assi(nments are t& #e %&mp'eted #y due
dates and need t& #esu#mitted ?&r e9a'uati&n #y Amity Uni9ersity-?.The students ha9e t&
atta%h a s%an si(nature in the ?&rmS
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1

Project Planning Appraisal and Control

ASSIGNMENT A
Problem 1: Precision Engineers Ltd. is considering a proposal to replace one of its
machines.The following data is available regarding the same:a. The machine was purchased 4 years
ago for Rs.1 lacs and has been depreciated at ! " p.a. as per the #$
% method. The machine has a remaining life of years& after which itssalvage value is e'pected
to be Rs.(.)( lacs. *ts present salvage value is Rs.+.( lacs.b. The new machine costs Rs.!!lacs& and
would be depreciated at 4(" p.a. as per #$% method. *ts e'pected life is ) years
and after years it is e'pected to fetch Rs.+ lacs.
Thei n s t a l l a t i o n o f t h i s m a c h i n e w i l l i n c r e a s e t h e a n n u a l r e v e n u e b y R s .
l a c s & a p a r t f r o m decreasing the operational costs by Rs.1.1( lacs per annum. ,ssume no
change in the depreciation rate if old machine is continued to be used.