mba3semprojectmanagementmarch2013 

mba3semprojectmanagementmarch2013
Master of Business Administration (MBA) Examination III Semester Project Management Time : 3 Hours) [Max. Marks : 80 Section A 1. Establish the need and importance of Project Management. Explain the various phases of Capital Budgeting. 2. (a) A successful human relations system is essential for successful execution of a project. What are the problems and challenges, a project manager is called upon to handle? (b) Explain the concept of Time Value of Money with suitable example: 3. (a) What are the components of Cost of Project? Discuss briefly. (b) What are the various sources of Project Finance? 4. Write short notes on any two of the following : (a) Investment Strategies (b) Demand Forecasting.: , (c) Technical Analysis for a Project (d) Abandonment Analysis. Section A 5. (a) Mr. 'X' deposits Rs. 1,00,000 in a bank, which pays 10 percent interest. How much he should withdraw annually for a period of 30 years ? Assume that at the end of 30 years, the amount deposited whittle down to zero. (b) What is the present value of perpetuity of the constant annual payment of Rs. 10,000, if the rate of interest is 10 percent? 6. The expected cash flows of a project are : Year Cash Flows (Rs.) 1 1,00,000 2 20,000 2 30,000 3 40,000 4 50,000 5 30,000 The cost of capital is 12 percent. Calculate the following : (d) NPV (e) BenefitCost Ratio (f) IRR (g) PayBack Period (h) Discounted PayBack Period. 7. International Funds has the following capital structure : Book Value Mkt Value (Rs.) (Rs.) Equity Capital 2,50,00.000 4,50,00,000 (25 lakh shares of Rs. 10 per) Pref. Capital 50,00,000 45,00,000 (50,000 shares Rs. 100 par, carrying 13% dividend) Res. And Surplus 1,50,00,000 Debentures 1,50,00,000 1,45,00,000 (1,50,000 debentures of Rs. 100 par carrying 14% interest) 6,00,00,000 6,40,00,000 The expected dividend per share is Rs. 1.40. The dividend per share is expected to grow at a rate of 8% forever. Pref. Shares are redeemable after 5 years, whereas the debenture are redeemable after 6 years. The tax rate of the Co. is 50%. Calculate the WACC for the existing capital structure using mkt. value proportions as weights. 8. Fit a straight line trend to the following data using the method of least squares. From the straight line trend, estimate the demand for the year 2002 : Year (x)  1995 1996 1997 1998 1999 2000 2001 Household Heaters (y)  600 825 970 1210 1440 1790 2070 (in thousands) 9. The activities, duration and direct activity costs of a project are : Time in Weeks Costs (Rs.) Activity Normal Crash Normal Crash 12 6 3 40,000 70,000 13 5 3 30,000 52,000 24 2 1 60,000 84,000 34 10 6 70,000 98,000 25 3 2 45,000 63,000 45 4 2 26,000 50,000 The indirect costs are Rs. 10,000 per week. (a) What is the minimum time in which this project can be completed? What is the minimum cost at which this can be done? (b) What activities should be crashed to minimize the total cost? 