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Ans to the Q. No.

Interpretation of the Direct requirement Matrix :


Each cell in a column of the direct requirement matrix shows how many cents of each
producing industry’s goods and/or services are required to produce one dollar of the
consuming industry’s production are called technical coefficients.

Here in the given table 0.264 is the technical coefficient.

It derives that 26.4 cents of agricultural products must be directly purchased to produce a
dollar’s worth of textile products .

Ans to the Q. No. 2


(a) Direct requirement matrix for the given data :

0.14 0.13 0.08


A= 0.5 0.19 0.16
0.18 0.25 0.25

1 0 0
I= 0 1 0
0 0 1

0.86 -0.14 -0.08


I-A = -0.5 0.81 -0.16
-0.18 -0.25 0.75

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Total Requirement Matrix :

1.4 0.31 0.21


(I-A)^-1 = 7.9 1.5 0.43
0.65 0.58 1.5

(b) The value of X

1.4 0.31 0.21 350


X= 7.9 1.5 0.43 400
0.65 0.58 1.5 150

672
= 3932
415.5

(c) The new value of X:

1.4 0.31 0.21 250


X= 7.9 1.5 0.43 300
0.65 0.58 1.5 100

480
= 2949
273

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Ans To the Q. No.4

Year Year Year Year


1 2 3 4

Technology A 9000$ -20000$ 7000$ 7000$

Rate of Interest 1.25^0=1 1.25^1=1.25 1.25^2=1.56 1.25^3=1.95

Discounted Value 9000$ -16000$ 4487$ 3589$

Technology B 12000$ -25000$ 10000$ 16000$

Rate of Interset 1.25^0=1 1.25^1=1.25 1.25^2=1.56 1.25^3=1.95

iscounted Value 12000$ -20000$ 6410$ 8205$

Summing up Net present value of Technology A=(9000-7924) $ =1076 $

Net present value of Technology B =(12000-5385) $=6615 $

So , Technology B should be undertaken .

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Ans to the Q. No. 5

Threat likelihood Impact

Low(10) Medium(50) High(100)

High(1.0) Low Medium High


10*1.0=10 50*1.0=50 100*1.0=100

Medium(0.5) Low Medium High


10*0.5=5 50*0.5=25 100*0.5=50

Low(0.1) Low Medium High


10*0.1=1 50*0.1=5 100*0.1=10

Risk scale : High >50 to 100; Medium >10 to 50 ;Low 1 to 10