PG – 982

*PG982*

IV Semester M.B.A. (Eve.) Degree Examination, July 2016 (2008 Scheme) MANAGEMENT F – 6 : Project Appraisal and Finance Time : 3 Hours

Max. Marks : 75

Instruction : Use of Tables permitted. SECTION – A Answer any six of the following. Each question carries two marks.

(6×2=12)

1. a) What do you mean by Project Appraisal ? b) What do you mean by preliminary screening ? c) What is Technical analysis ? d) What do you mean by Capital budgeting ? e) What do you mean by Cost leadership ? f) What do you mean by Vertical integration ? g) What is Cpm ? h) What do you mean by Social Cost Benefit Analysis ? SECTION – B Answer any three of the following. Each carries eight marks.

(3×8=24)

2. Briefly explain the different facets of Project Analysis. 3. Briefly explain the Porter’s Five force model of driving industry competition. 4. How the firm can scout for project ideas ? Suggest the firm with a wide variety of sources to get good project ideas. 5. Write a short note on : a) Venture Capital

b) Factoring.

6. What is CAPM ? Briefly explain the assumptions and limitations of CAPM. P.T.O.

PG – 982

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*PG982*

SECTION – C Answer any two questions. Each carries twelve marks.

(2×12=24)

7. Explain the five broad phases of Capital budgeting. 8. What do you mean by demand forecasting ? Explain the various methods of demand forecasting. 9. A project consists of 12 activities and their time estimates are shown below :

Activity

Time (in weeks) to

tm

tp

(1-2)

4

6

10

(1-3)

3

7

12

(1-4)

5

6

9

(1-7)

2

4

6

(2-4)

6

10

20

(2-6)

3

4

7

(2-7)

5

9

15

(3-4)

3

7

12

(4-5)

2

4

5

(5-6)

1

3

6

(3-7)

2

5

8

(6-7)

1

2

6

a) Draw the network diagram. b) Determine the critical path. c) Calculate event slacks and activity floats.

*PG982*

PG – 982

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SECTION – D Compulsory :

(1×15=15)

10. Phoenix Company is considering two mutually exclusive investments, project P and Project Q. The expected Cash flows of these projects are as follows : in (000's)

Year

Project P

Project Q

0

(10,000)

(16,000)

1

8,000

2,000

2

6,000

4,000

3

5,000

6,000

4

2,000

8,000

5

4,000

10,000

You are required to calculate a) Pay back period and Discounted pay back period for Projects P and Q. b) Construct the NPV profiles for project P and Q. c) What is the IRR of each project ? d) Calculate Benefit Cost Ratio for P and Q.

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