QUESTION 1 Basic Project Information Sales Year 1 – 2 Nil Year 3 RM 20,000 Year 4 – 10 RM 50,000 Costs Fixed Cost Year 1 – 10 RM 7,000 Variable Costs 20 % of sales Investment Year 1 RM 30,000 Terminal Value of Investment Year 10 RM 5,000 Depreciation 10% of initial investment Please prepare the Cash Flow Statement and estimate, the following: a) Payback period b) Net Present Value (NPV) at 10% discount rate (using Present Value Table) c) Internal Rate of Return (IRR) for the project (using Excel Programme) Also prepare a Profit and Loss Statement and compute the Average Annual Profitability for the project life. QUESTION 2 a) What is meant by project management? b) Please indicate some of the benefits of learning / practicing project management c) Write a short notes on the below topics: i) Opportunity studies ii) Feasibility studies iii) Project Planning and Management Cycle – various phases and their inter-connections QUESTION 3 Given the following information, draw CPM diagram: Activity Immediate Predecessor Duration (Days) 1 – 5 2 – 3 3 1, 4 2 4 2 6 5 2 5 6 3, 5 3 a) Draw a network diagram and show the critical path. b) What is the earliest time, the above project can be completed? QUESTION 4 Trace the recent developments in Project Management techniques and practices (particularly resulting from globalization and rapid changes in technology). QUESTION 5 Write short notes on the TWO (2) of the following: i) Project Manager – main responsibilities and desired traits ii) Project Organization – types and their suitability for implementing various types of organization iii) Evaluation of Public Sector Projects – Benefit – Cost Ratio and the Cost Effectiveness Criteria QUESTION 6 CASE: Cincinnati Equipment Company Cincinnati Equipment Company, which specializes in the manufacture of modern construction equipment, will be building a facility to house a new foundry. The company has selected a project manager and team to follow the project to completion. The project team is very interested in selecting an appropriate scheduling technique for the project. The project manager has thus set the following guidelines for the selection process: simple, able to show durations of events, the flow of work and the relative sequence of events, able to indicate planning and actual flow, which items may proceed at the same time and how far they are from completion. The assistant project manager likes PERT and the construction supervisor prefers CPM. Questions : If you were project manager, which method would you use, and why? QUESTION 7 a) What is meant by the Work-Breakdown-Structure? Give some example. b) What are the various Project Control mechanisms / techniques. Briefly discuss. c) Write brief notes on: i) Role of leadership in project management ii) Team building – strategic elements iii) Project termination – essential steps QUESTION 8 Study the case: International Capital, Inc. and prepare the managerial report, presenting planned schedule and expected completion time in workdays. Also, indicate the time required to complete the project with 95% chance of success. CASE STUDY : INTERNATIONAL CAPITAL, INC. International Capital, Inc. (IC), is a small investment banking firm that specializes in securing funds for small – to medium-sized firms. IC is able to use a standardized project format for each engagement. Only activity times and unusual circumstances change the standard network. Beth Brown has been assigned to this client as project manager partner and has compiled the network information and activity times for the latest client below: Activity Description Immediate Predecessor A Start story draft using template – B Research client firm – C Create ‘due diligence’ rough draft A, B D Coordinate needs proposal C E Estimate future demand and cash flows C F Draft future plans for client company E G Create and approve legal documents C H Integrate all drafts into first-draft proposal D, F, G I Line up potential sources of capital G, F J Check, approve and print final legal proposal H K Sign contracts and transfer funds I, J TIME IN WORKDAYS ACTIVITY OPTIMISTIC MOST LIKELY PESSIMISTIC A 4 7 10 B 2 4 8 C 2 5 8 D 16 19 28 E 6 9 24 F 1 7 13 G 4 10 28 H 2 5 14 I 5 8 17 J 2 5 8 K 17 29 45