Bachelor of Management Studies (B.M.S.) SEM VI 2018 19 May 2018-19 FINANCE PROJECT MGT Question Paper - Mumbai University | munotes

Questions asked in this paper

• (2) Figures to the right indicate full marks

1. Q1 Objective questions:
2. Q1 (a) State whether the following are True or False (any 8): 8 marks
   • 1. Capital intensive project involves small amount of investment
   • 2. Project structure provides a training ground to project managers
   • 3. Depreciation is a non- cost item
   • 5. Delphi method is an individual decision making technique
   • 6. Lean means creating more value for customers with firm resources
   • 7. Risk monitoring and controlling involves keeping a track of the identified risk
   • 8. PMMM strengthens link between strategic planning and execution
   • 9. Project management consultants manage the project by application of their knowledge, skill and experience at various stages
   • 10. ARR method is based on accounting profit
3. Q1 (b) Match the Column (any 7): 7 marks
4. Q2 A company can make either of two investments. Required rate of return is 10%. Calculate Net Present Value and profitability index for each project from the following details: (15 Marks)
5. Q2 (a) How are project classified? 8 marks
6. Q2 (b) Explain Strategic Business Unit (SBU) in project management. 7 marks
7. Q3 Calculate the operating leverage, financial leverage and combined leverage from the following data: (15 Marks) Output (in units) 75,000
8. Q3 (a) Discuss the importance of Project Feasibility Study. 8 marks
9. Q3 (b) Explain in detail Product Mix analysis. 7 marks
10. Q4 Following is the Balance sheet of Raj on March, 2014 50,000 Equity Shares of 10,00,000 Machinery 4,80,000 Cash in hand 6,800 3,96,000 Cash at Bank Company transfer 20% of profit after tax to general reserve Net Profit before Taxation for the last 3 years have been as follows: For the year ended 31/03/2012 Rs. 5,44,000 15 marks
    • 2. For the year ended 31/03/2013Rs. 7,32,000
    • 3. For the year ended 31/03/2014 Rs. 7,88 000 Machinery is valued at Rs. 6,37,200. Average yield is 20%. The rate of Tax is 50%. Use simple average. Calculate value of equity share as per intrinsic value method and yield method
11. Q4 (a) Explain Modern Development in Project Management. 7 marks
12. Q4 (b) What are the steps involved in termination of a project? 8 marks
13. Q5 Case Study Mr. Ajay wants to start a Manufacturing Unit. He has Rs.1,05,200 in his bank account. His parents have promised to gift him Rs.3,50,000 He has estimated the project cost at Rs. 18,00,000; of which machinery will be Rs. 15,25,000 and the balance amount will be for furniture and fittings. The bank finance is available to the extent of 80% of the project cost. He expects first year’s sales at Rs. 40,00,000 with annual increase of 20% every year over previous year. The cost of sales will be 80% of sales. The rate of interest on loan will be 10% on reducing balance method. The loan is repayable @ Rs. 3,00,000 at the end of every year. He charges depreciation @ 20% on his fixed assets under straight line and his overheads for three years are Rs. 2,40,000; Rs.3,00,000 and Rs. 3,60,000 per year respectively. Assume Tax rate You are required to prepare:
    • 1. Income Statement for the first 3 years
    • 2. Amortization Schedule for loan
    • 3. Calculate the debt service coverage ratio and interest coverage ratio for the above 3 years
14. Q5 Short Notes (Any 3) 15 marks
    • a) Types of Risks in Projects
    • C) Matrix Organization
    • d) SWOT Analysis

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