~

(fJefls.e write.vour Exam Roll No.) ExomR~ll No. ./J..f!2.l.Y!/ l tJ 7

END"TERM EXAMINATION
SIXTHSEMESTERIBBA/(B&I)/(TIM») MAY-WID .
'" ,. :;

lTmre:3
RapeT
,
Code:JJBAI(B&I)/(TTMJ304oo

Paper 10: 17118150304

HoulS -
,;",J"'# ",.Sufiject: Project Planning & Evaluation

Maximum Maries: 75
:
t >,.
.
---N~te:A ttempt an'Yfil-ve
0

qU ~stions. Normal 'distribulionand,o ther tables un-

'
I

r demand. All ,
. , questions carryequal ,.,..
marks. Simple calculator: will be supplied
is allowed. , .
. , . , , , ~?
)

, ~I-(-a)-~efin-e tI~:li~k bet;:~n strate?ic' plan?ing ~n~ capitaLbUdget!ng.--

(b) Explain the followll1g tools of portfolio plannIng: BCG Matrix,

0
' ~ General Electric;s stoplight matrix, and Mckinsey matrix.
~ (5+10)
..J . '"'-
. Ques. 2~Describe briet1y
needs to be the aspects
monitored of dimensions
and the a business environment
a firm needs that
to
appraise its strengths and weaknesses for identifying investment
opportunities.
()) Explain the sources of positive NPV.
(10+5)
0

-- ~. 3~What is project management? Why do we need pt:oject -

~~l~~~gement?
~ What are the pre-requisites for a successful project implementation.
(8+7)

bel.d s. 4 The balance sheet of ABC limited at the end of a ye:,

.
---------------------------------------------------------------------------------------
~iabilities ~mount{OO~ "5 -~ts"'l -
is given

~= Amouiit{OOO)ci
6J

Share Capital 500 Fixed Assets 1100

Reserves 400 Investments 50
Secured Loans 400 Current Assets 50
Unsecured Loans 300 Cash 100
Current Liabilities 600 Receivables 400
Provisions I00 ~ Inventories ... 600
2300 0 ,2300
""" The projected Income statement and the distribution of earnings ( in Rs. 000)
'-' is given below:
------- ----- -..----- --- -- ---..--- -- - ----- -- ---- --- ---- --- -------
Sales 2500 '

Cost of goods sold 1900

Depreciation ISO
Profit before interest and tax 450
Interest 120
Profit before tax 330
Tax 180
Protit after tax 150
Dividends 100
'. Retained Earnings 50
-------------------------------------------------------------------------------------
During the following year, the firm plans to raise a secured loan ofRs.
1,00,000 to repay a previous term loan to the extent of Rs. 50,000. Current
liabilities and provisions would increase by 5%. Further the firm plans to
acquire fixed assets worth Rs. 1,50,000 and raise its investments by Rs.
50,000. Receivables are expected to increase by 6%. The level of cash would
be the balancing amount in the projected balance sheet.
From the above given information, prepare a projected cash flow statement
and projected balance sheet.
(7+8) P.T.O.
1l\
 [-2-]

ues. 5 (a) Three assets, A, Band C have expected returns of 12%, 18%
a,\d 24% respectively. The variances and covariances are as follows:
~
I~,

I
,
-
A
"
B
A"
0.02
0.0 I
'B
O.Ot",
"~
0.06"
'""-~:~;C'

-
J""-
-"
-
-0.03
0
~
" C -0.03 0 " ,:c 0~08
-------------------------------------------------------------------------------------------
~
What is the expected return and standard deyiation of a portfolio consisting
of 40% of funds in A, 30% of funds in B and remaining funds in C?

(b) Consider two portfolios, one consisting of 4 securities and the other
consisting of 10 securities. All the securities have a beta of one and unique
risk 000%. Each portfolio distributes weight equally among,its component,

sccuri~ics. i,fthe srandar? deviation or the market index is 20%, calculate the
total rIsk 01 both portfolios.
-/
::
(7+8) if "j
I ~/~
~. 6 (a) What as'pects are considered in technical analysis? List the J I
~~~t~.s affecting the appropriate choice of technology.
, ,

(b) Describe the difterent means of financing a project.

(9+6)
O~ 7 A project consists Ofnine ac"tivities whose til1)e estimates (weeks)
v-?'nd~ther characteristics are given below:
,
,

--------------------------------------------------------------------------------------
Activity optimistic pessimistic most likely Prededing activities
time time time

A 2 4 6
B
C
6
6
6
12
5
24
6

8 ~
~
D 2 'A.
E II 14 23 'A
F 8 10 12 ~,D ,
~
G 3 6 9 8',0'.
H 9 15 . 27 C,F
10 16 E
~ [ 4
Answer the following;
f.. (i) Show the PERT network,
t (ii) Determine the critical path,
~) (iii)
(iv)
What is the expected project conipletion time and its variance?
What is the probability that the project will be completed in 30

~
-
. weeks, and
j- (v) If the project is required to completed by December 31 of a given
'. .\..-:L year and the manager wants to be.95% sure of meeting the
~
,. \ deadline, when should he start the project work.
~~ ,(\
"
'
~,
Q
~
7
-

e.8 (a) How would you characterize the market?

... (b) What is demand forecasting?Explainthe varioustechniques
used in demand forecasting.
(6+9)
"."."."."."."."."..,.".".

~'l "30"'-,"'{ ~
 ,_._~'

(Please write your Exam Roll No.) Exam Roll No. ,............

END TERM EXAMINATION

SIXTH SEMESTER IBBAlBBA(ITM)/BBA(B&I)IMA '!i.JtJNE-ZOO9
Paper Code: BBAlBBA(B&I)/BBA(TTM)3.~ Subject: p;oject Planning iind Evaluation
Paper 1d-17304 (2004-2006)
18304 (2005-2006)
50304 (2OO4-20O6J
Time: 3 Hours !MaximumiMarks :75
I Note: Attemptll.ny five questio,ts~ - J
01 (a) Explain the imp()rtance ot SWOT analysis in project appraisal. (7)
(b) Explain fh~ various demand forecasting techniques.' " (8)
02 (a) Whatare the differentsources of Projectfinance? '" (1)
(b)Explain'leasing'as asource ofProjectfinanCe. -' , (8)
03 (a) What do you mean by projeCt iTlanagement?-Discuss'the objectives at-project management? (7)
(b) Explain the different phases ofprojed'management. i f8)
'-.,./ .' ".

04. Explain the nature of the following portfolioplanning tools: (1+8)

(a) BCGProductPortfolioMatriK' .:-
,r

(b)~ " ~E Sto~lightMatrix. , ,"

05 (a) Discuss the broad phases o~capital budge~n9; (7)

(b) Differentiate betWeen locatiOn and site. Describe the factors affecting location decisions. (5)
06 Writenotes on the following: " (5x3=15) ' '-

(a) Capital Asset Pricing Model

(b) Importance of corporate risk
(c) Differen~betweenp~RT and 9PM " : '

07 (a) What are"the various facto~s to be considered in technical appraisal? (7)

(b) Calculate~the weight~d. ~vera_ge'cost _of.capit~1 of a ne\'VIyimpl~mented project having
,...
folio Ca itals~tt:e:rd. ~ , \v/

Sourc~,flnance" mount Rs'

E uit oa ita. 4.50.000
RetainedEamin 4,00,000
PreferenceShareCa ital 3,00,000
Debt 12,00,000
I .'
The expected after tax cost of the different components of finance are as under:
"-../ i::quity CapitaL -' "17.00%' " '

-'R~tained gaming 17.Qq~

, Preferenc~ Share Capital 10.0P%
; Debt .09.00%
08, .Present the following activities in ,!he form of a PERT network and determine: (5x3=15)
a) Criticalpath . 'r'~' i
b) Earliest,and.latestexpected tim~:,
c) Pro~~pilityof completingthe projectwithinscheduledcompletionof 48 days.
,:
Actiyity Completion TIme .-- Most expected -l
Optimistic (to) ;' ,Pssimistic (tp)
" " (1m) I

1-2 4
'
12
, 2-3 1 ,) 7 : -==1
-j
2-4 8. 16 12
3-5 3 7 5 '-1
4-5 ° o 0 I
4-6 3 9
5-7
5-8
7-9
3
4
4 ,
9
8
12
R 8 '1
l
8-9 2 8 5
9-10 4 16 10
6-10 4 8 6
************
 l.~ END TERM EXAMINATION
,.., , ,-, 3~,~'H SEMESTER IBBAI MAY-2008

~:~:~ ~~~~3~:A 304 ~:.~~~-~~~-~~~:~t -

P/~~n/~~:;t~~~:~~~g~; .J
Time: 3 Hours . Maximum Marks :75
[- ,.--- Note: Attempt-one question from each unit. Q.1 i~_~_~!!'.E..ulsgry. --- 1

01 Writeshort notes on the following(not more than 150 words) (3x5=15)

(a) Project lifecycle
(b) Delphitechnique
(c) Project rating Index
(d) Float vIs slack
(e) CAPM
UNIT-I
~~; 02 Discuss the five broad phases of capital budgeting. (15)

03 Discuss the key business considerations relevant for project financing decision. (15)
UNIT-II
04 How would you characterise the market? Briefly explain any two quantitative
methods of demand forecasting. (15)

Q5 Differentiate between location and site. Describe the factors affecting location
decisions. (15)

UNIT-III .
06 The normal and crash times and direct costs for the activities are shown below:- (5x3=15 -

r
--=-- Time --e. - Cost "--~=l
~ 1-2
ActiVTfi'- 5 2 6000 9000
'-'
I 2-4 6 3 7000 10000
1-3 I
~orm-"Il
4 Crash
2 Normal
1000 Crash~
2000 .

. 3-4 4000 8000.

I

I
7 I 5
4-7 9 5 I
6000 9200
I

. 3-5 I 12 I 3 16000 I
19600
I

4-6 10 6 15000 18000

4900
I

6-7 ' -/ 4 4000

7-9
5-9 l ---
6
12
4
7
3000
4000
4200
8500

(a) Draw the network diagram.

(b) Determine the critical path.
(c) Find the minimum cost project schedule if the indirect costs are Rs. 1000 per
week.

07 Project XYZ Ltd.had set up a project 4 years ago. The project has remaining life
of 6 years. The cash flow forecast for the balance life is as follows:-
P.T.C.
[-2-]

'-I~
 UNIT-IV ,
08 What fundamental factors drive beta? How are fundamental beta superior to
historical beta? (15)

09 An all equity firm is evaluating the following projects:- (9+6=15)

The risk free rate is 11%, and the expected market premium is 6%, the firm's
cost of capital is 16%.

Project Beta Expected Return ~

A 0.5 15
B 0.8 16
C 1.2 21
0 1.6 22
E 0.7 23 "
~

(a) Which project should be accepted? .

(b) If the firm's cost of capital is used as a hurdle rate,. which project will be
accepted or rejected incorrectly?
************

r
"J
 l.... (Please write your Exam Roll No.) Exam Roll No. ......................

END TERM EXAMINATION

SIXTH SEMESTER [BBAI MAY~2008
Paper Code: BBA304 Subject: Project Planning And Evaluation
Paper Id: 17304 - (Batch: 2001-2003)
Time: 3 Hours Maximum Marks :75
Note: Attempt five questions In aI/Including Q.8 which Is compulsory. AI/ questions carry 15
marks each.

01 "The identification of opportunities for project investment requires an understanding of the

environment in which one operates". Elucidate this statement and identify the various
environmentalfactors that need to be considered In this regard.
Q2 "Except for project with assured captive markets, a thorough market analysis is one of the most
essential parts of project investigation". Explain 'the steps involved in estimating domestic
demand. .

03 "Technical feasibility of a project depends largely on location, availability and cost of various
requirements in alternative locations". Discuss the statement in the light of location of a project.
04 What are the important facets of financial analysis of a project? Briefly explain them bringing out
the key issues in project analysis.
--
05 You have decided to write a small book. You believe it will take one week to outline the book.
Once the outline is complete, you will begin work on the rough draft and this rough draft should
take seven weeks to compose. When the rough draft is complete, you can begin writing and
typingthe finaldraftwhich shallconsumesixweeks. .
One of the most difficult task is to find a publisher. You begin the search for a suitable publisher
as soon as the outline is complete. This search can be made while you are writing the rough draft
and final draft and should be completed in eight weeks. When you have found a publisher and
completed the final draft, the book can be printed. The printing and binding process will take four
weeks. When the publisher has seen the final draft of your book, he shall begin to. mail
advertising brouchers to potential consumers. This process will take two Weeks. You can expect
your first sale after all the brouchers have been mailed and the printing is complete,
Your book will need a title. You can start to think about a title as soon as you begin the outline.
You want three weeks to come up with a title. The title must be selected before the book can be
printed. From the above details:-' ,.
(a) Set up a project network with the activity times placed above the activity arrows.
(b) What is the elapsed time between starting the book and the sale of the first book?
Q6 Discuss the role played by development banks and other financial instituti6ns.inproject financing
in India. '

Q7 The cost sheet of ABC Ltd. provides the.following data:

Data Cost er unit Rs.
Raw Material Rs. 50
Direct labour Rs. 20
Over heads (including depreciation of Rs.1a Rs, 40
Total cost 110
Profits 20
Sellin rice 130
Average raw material in stock is for one month. Average material in work in progress is for half
month. Credit allowed by suppliers: one month, credit allowed to debtors, one month. Average
time lag in payment of wages-10days, average time lag in payment of overheads 30 days. 25% of
the sales are on cash basis: Cash balance expected to be Rs. 1,00,000. Finished goods lie in the
warehouse for one month. You are required to prepare a statement of the working capital needed
to finance a level of the activity of 54,000 units of output. Production is carried on evenly
throughout the year and wages and overheads accrue similarly. State your assumptions if any.
clearly.
08 Write short notes on any two of the following:-
(a) Various sources of obtaining project finance in India.
(b) Performance Evaluation Report of a project.
(c) Role of PERT and CPM Models in project management. .
(d) The Porter ModeJfor estimation of profit potential of industries.
************

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