Rift University

Assignment for Project Analysis and Management

Deadline Submission: 29/11/2020

Instruction: Answer the following questions accordingly

1. Go online and search for project life cycle models. Identify at least two that are different
from the PMI model, and compare and contrast the phases. Be sure to cite your sources.
2. How does the application of a phased approach to project management vary in different
industries? Do you think that the phases work the same in construction as they do in event
management or software development?
3. The vice-president (VP) of marketing approaches you with a fabulous idea. (Obviously, it
must be “fabulous” because he thought of it.) He wants to set up kiosk in local grocery stores
as mini-offices. These offices will offer customers the ability to sign up for car and home
insurance services as well as make their bill payments. He believes that the exposure in
grocery stores will increase awareness of the company’s offerings. He told you that senior
management has already cleared the project, and he will dedicate as many resources to this as
he can. He wants the new kiosks in place in 12 selected stores in a major city by the end of
the year. Finally, he has assigned you to head up this project. “Is it a project?”
4. Everyone has been involved in projects. What is the largest project you have been involved
in? (You do not have to have been the project manager, but could have played another role.)
A. Write one sentence that describes the objective of the project.
B. Describe specifically how this project meets the definition of a project used in this
textbook. (How is it unique? What were the time constraints? If it is over, how did you
know it was over? If it is ongoing, how will you know when it is over?
C. What was your role? Were you the project manager, a volunteer, some other role? If
you were not the project manager, who was?
D. Was the project part of a larger portfolio or program of projects?
E. Who else was involved?
F. What was the budget?
G. Did you anticipate any risks at the outset? Did the project experience any outside
forces that caused a change in either the objectives or the approach to achieving those
objectives?
5. In what ways can the following activities be seen as projects? In what ways do they resemble
ongoing, routine business activities? Feel free to add assumptions and details to describe how
the activity might be a project in one context and routine in another.
A. Reading the chapter before attending a university lecture.
B. Taking the bus to work each day.
C. Piloting an aircraft between Vancouver and Fiji.
D. Teaching a course for the first time; teaching the same course every semester.
6. A firm is considering two possible projects. The first project will require an initial investment
of $100,000 and produces positive cash flows of $20,000 a year for the next 10 years. In
addition to these cash flows, this project will increase cash flows on the firm’s existing
projects by $5000 per year. The second project also requires an initial investment of
$100,000 and produces positive cash flows of $20,000 a year for the next 10 years. In
addition, it also affects the cash flows of the firm’s existing projects. However, unlike the
first project, this second project will decrease cash flows on the firm’s existing projects by
$5000 per year. Using a 5% opportunity cost of capital, which of the projects have the higher
NPV? (4 Points )
7. What is the project cycle? Discuss the stage in the project cycle in details?(5 Points)
8. The following are the details of two projects and interest rate of the project 10%. Decided the
acceptance and rejection of the project based on the criteria indicated from A-F. (9 Points)
Cash Inflows
Cost Year 1 Year 2 Year 3 Year 4
Project A 110,000 60,000 20,000 10,000 50,000
Project B 100,000 10,000 10,000 20,000 100,000
A. What is payback period for project A? B. What is payback period for project B?

C. If the maximum payback period is 4 year which project is acceptable?

D. If the maximum payback period is 6 year which project is acceptable?

E. Find Net Present value for project A

F. Find Net Present value for project B