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OPM (Old Syllabus) Papers
OPM (Old Syllabus) Papers
December 2002
I—13(OPM)
Revised Syllabus
Time Allowed : 3 Hours Full Marks : 100
(2)
F-13(OPM)
Revised syllabus
Marks
SECTION II
Answer any two out of the following questions under Section II.
5. (a) INTEL Project is having the following activities and their time estimates: 5+3+2
Activity Predecessor Time (days)
Optimistic Likely Pressimistic
(a) (m) (b)
A — 2 4 6
B A 8 12 16
C A 14 16 30
D B 4 10 16
E C,B 6 12 18
F E 6 8 22
G D 18 18 30
H F,G 8 14 32
(i) Draw a PERT Network for the project.
(ii) Identify the critical path and calculate the earliest expected time to
complete the project.
(b) What is 'pay back period'? Under what situations investment decisions are 2+2=4
mainly guided by pay-back period method?
(c) What are the main differences between PERT & CPM? 6
6. (a) S Limited has Rs. 10,00,000 allocated for capital budgeting purposes. The 10
following proposals and associated Profitability Index have been
determined.
Project Amount (Rs.) Profitability Index
1 300,000 1.22
2 150,000 0.95
3 350,000 1.20
4 450,000 1.18
5 200,000 1.20
6 400,000 1.05
Which of the above investment should be undertaken?
Assume that the Projects are indivisible and there is no alternative use of
the money allotted for capital budgeting.
(b) How gestation period of an on-going project affects Project financing 2
decisions?
(c) How to combat the dilemma of project failures especially due to the 8
shortage of funds from the Government coffers.
7. (a) An Investor wants to invest in a profitable project considering the 10
opportunities available and business environment. As a Cost Accountant,
suggest some sources for Project identification.
(b) What is Feasibility Study? 6
(c) What are the main objectives of pre-feasibility Study? 4
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