Professional Documents
Culture Documents
Section -A
Q1: Attempt all parts carrying equal marks. Write answers of each part in short. 10 *2 =20)
a) Project identification is same as Project formulation. Comment.
b) Discus the various forms of project organization.
c) What do you mean by Line of Balance? Also explain its application.
d) Distinguish between NPV and IRR method application for financial viability of a
Project.
e) Explain the Gantt chart.
f) How can technical analysis be beneficial for project analysis?
g) State the difference between Capital cost and operating cost of the product.
h) What is feasibility report? Also discuss various stages of project preparation.
i) What is Shadow Pricing?
j) Explain the Work Packaging Plan.
Section-B
Q10 A firm uses simple exponential smoothing α =0.1 to the forecast demand .The forecast
for the first week of February 1 was 500 units where actual demands turned out to be 450
units. Forecast the demand for the week of February onwards if the subsequent demand were
actually 505,516,488,467,554 and 510 units.
Q11 A company is considering two mutually exclusive projects. The Finance Director
thinks that the project with the higher NPV should be chosen whereas the Managing
Director thinks that the one with the higher IRR should be undertaken especially as both
projects have the same initial outlay and length of life.
Year 0 1 2 3 4 5
Cash
Flows: (200) 35 80 90 75 20
Project X (200) 218 10 10 4 3
Project Y
The cost of capital is 10% .Compute the NPV and IRR for each project. Which project
would you recommend and why?
Year 0 1 2 3 4 5
Discount Factors (10%) 1 0.91 0.83 0.75 0.65 0.62
(20%) 1 0.83 0.69 0.58 0.48 0.41