19EC71C – PROJECT MANAGEMENT AND FINANCE

QUESTION BANK
CO3-Big questions

1. The Lade and Bach company produces office chairs. The price of the chair is Rs.99.75
and Variable cost per chair is Rs.49.75.The following costs are incurred:
Depreciation of plant and equipment Rs.20000/ year
Property tax Rs.12000/ year
Manager’s salary and fringe benefits Rs.5200/ month
a.What is total revenue function?
b.What is total cost function?
c.What is profit function?
d.What is break even points in number of chairs?
e.What is revenue at break even point?
f.Estimate the profit when Rs.1500 chairs are produced per year.
g.What is the income at breakeven point?
h.How many chairs must be sold for the company to make Rs.75000 in a year?
2. Explain the significance of risk analysis in drafting a project plan.Also discuss the
various risk management technique
3. Discuss the five stages of appraisal in the UNIDO method with an example
4. Company E produces e-bikes. A rental cost of a factory is £8,000 a month and the
cost of heat and light there is £6,000 a month. The selling price per e-bike is £2,000. The cost
of materials per e-bike is £400. Find the following
a)How many e-bikes per month does the company have to produce and sell to reach the
break-even level of output?
b)Margin of safety
c)Sales for desired profit of £15,000
5. Compare and Contrast sensitivity analysis with break-even analysis. Describe how
each of these methods might influence management decision making.
6. Explain the significance of risk analysis in drafting a project plan. Also discuss in
detail the various risk management technique.
CO4-Big questions

1. Staffing the project organization can become a long and tedious effort especially on large
and complex engineering projects. Keeping the below questions in your mind, Analyze and
formulate the organizational staffing process for a project.
a)What people resources are required?
b)What will the people come from?
c)What type of project organizational structure will be best?

2. The anxiety experienced by team members is normal and predictable, but is a barrier to
getting the team quickly focused on the task. Describe the barriers for effective team building
with suitable example.

3. Analyze the Employee-Manager problems in a project environment. Interpret it with

suitable examples.

4. Consider you are a Director for a company;

Examine various aspects for selecting the project manager for your company. What are
the key skills you will analyze to select him/her as an effective project leader.

5. Develop the organizational chart for the project and determine its relationship to parent
organizational structure.

6. Compare intra-personal versus inter-personal relationships. When can we do practically

to have excellent interpersonal relationship with:
a.Subordinates
b.Peers
c.Superiors

7. Examine with suitable examples from the real world how a sound knowledge of
perception helps a manager in managing people and situations

CO5-Big questions

1. Identify the critical path

From the above network graph find following parameters.

a)Latest Finish time b)Earliest start timec)Total float d) free float e)Independent float
 2. For the activity given below draw the network diagram and also calculate all floats.

3.The following data available for a project. Find Critical path, total float, free float and
independent float

4. For the activity given below draw the network diagram and also calculate all floats.

Activity Predecessors Duration(Days)

a - 3

b a 4

c a 5

d a 4
e b 2

f d 9

g c,e 6

h f,g 2