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Marking Scheme
Marking Scheme
Marking Scheme
[Total 25 Marks]
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Q2)
Project
Discounted
Year A cash
Cash flow
flows DF
0 -10000 1 -10000
1 5000 0.909 4545
2 4000 0.826 3304
Project
Discounted
Year B cash
Cash flow
flows DF
1 -10000 1 -10000
2 1000 0.909 909
3 3000 0.826 2478
4 4000 0.751 3004
4 6750 0.683 4610.25
NPV 1001.25
(2.5 Marks)
We can see, the NPV of project Y is greater than the NPV of project X. Hence, the firm
should invest in project Y. (02 Marks)
v. Pravin Raaghav is considering acquiring a manufacture plant. The purchase price is Rs.1
236 100.00. The owners believe the plant will generate net cash inflows of Rs. 309
025.00 annually. It will have to be replaced in eight years. Use the payback method to
determine whether Pravin Raaghav should purchase this plant? Justify your answer?
Payback period= Initial investment/ Annual cash flow
Rs.1 236 100.00/ Rs. 309 025.00
= 4 years (04 Marks)
Yes, it is a good investment. Pravin Raaghav should purchase. (01 Mark)
Reason: It will lapse in eight years. But this investment going to pay self-back in
4 years. Therefore, it is a good investment according to the payback period.
(01 Mark)
[Total 25 Marks]
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Q3)
iii. Mention five Suggestions for Improving User Input in Project Scope Management?
Develop a good project selection process and insist that sponsors are from the user
organization.
Place users on the project team in important roles.
Hold regular meetings with defined agendas, and have users sign off on key
deliverables presented at meetings.
Deliver something to users and sponsors on a regular basis.
Don’t promise to deliver when you know you can’t.
Co-locate users with developers.
(Any Five = 5 * 1 = 05 Marks)
iv. Describe the four kinds of task dependencies using diagram?
(For the complete answer 05 Marks, For the partial answer 02 Marks) Accept any
correct diagram
v. Assume that you are the project manager of KSNTG Pvt Ltd and have drawn up an outline
plan for the fabrication of a hardware component project.
a. Draw the precedence diagram/ Activity on Node (AON) network diagram for the given
fabrication of a hardware component project. On the diagram, compute Early Start
(ES), Early Finish (EF), Late Start (LS) and Late Finish (LF) time estimates and Total
Float(TF) for each activity.
Activity Description Preceded By Duration (in weeks)
Legend:
ES D EF
Activity Name
LS TF LF
(For the correct diagram (five nodes with estimated values according to the
legend) = 05 Marks)
b. Find the critical path and project duration.
Critical Path = Total Float (TF) is zero for the activities => A – C – D – E (02 Marks)
Project duration = 4 + 2 + 5 + 2 = 13 weeks (01 Mark)
[Total 25 Marks]
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v. The size of a development project is 35 000 Line of Codes. Find the value for average staff
and productivity for Embedded mode using basic COCOMO model.
(hint: E= 3.6 x (size) 1.26 TDEV= 2.5 x (E) 0.32 )
=
3.6 (35) 1.26 (01 Mark)
=
2.5 [ 3.6 (35) 1.26 ] . 0.32 (02 Marks)
= (3.6 (35) 1.26 )/(2.5 [ 3.6 (35) 1.26 ] . 0.32 ) (02 Marks)
[Total 25 Marks]
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Q5)
iii. Mention five habits that project managers can apply to improve effectiveness on projects
according to the Covey’s 7 Habits?
Be proactive
Begin with the end in mind
Put first things first
Think win/win
Seek first to understand, then to be understood
Synergize
Sharpen the saw
(Any Five = 05 Marks)
iv. List five Suggestions for Improving Project Communications?
v. Risk is the “possibility of loss or injury” and understanding the risk is the responsibility
of Project Manager.
a. Mention the four risk identification tools and techniques?
Brainstorming
The Delphi technique
Interviewing
SWOT analysis (Four tools and techniques = 04 Marks)
b. What are the process responsibilities of project manager?
Project issues
Disseminating project information
Mitigating project risk
Quality
Managing scope
Metrics
Managing the overall work plan (Any Four = 04 Marks)
[Total 25 Marks]
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