MBF 401 PROJECT APPRAISAL, FINANCE AND MANAGEMENT

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ASSIGNMENT

 

PROGRAM MBABF
SEMESTER IV
SUBJECT CODE & NAME MBF 401 PROJECT APPRAISAL, FINANCE AND MANAGEMENT
CREDIT 4
BK ID B 1409
MAX.MARKS 60

 

Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.

 

1 A. Define capital investment and list the types.

Answer: Funds invested in a firm or enterprise for the purposes of furthering its business objectives. Capital investment may also refer to a firm’s acquisition of capital assets or fixed assets such as manufacturing plants and machinery that is expected to be productive over many years.

Sources of capital investment are manifold, and can include equity investors, banks, financial institutions, venture capital and angel investors. While capital investment is usually earmarked for capital or long-life assets, a portion may also be used for working capital purposes.

 

 

 

 

  1. Explain capital budgeting process

Answer: Capital budgeting is the process that companies use for decision making on capital project. The capital project

 

 

 

 

2 What information is required for preparing the project implementation schedule?

Answer: Before developing such a plan, pause a moment and reflect on what are some of the key questions the plan will have to address:

  • What are the expected benefits to stakeholders?
  • What are the risks?
  • What scale of technological solution do you need?
  • What cooperative services

 

3 a. Discuss the difference between cash flow and accounting profit.

Answer: When it comes to accounting, there are two main methods of determining a firm’s financial health and profitability. One method is to calculate the firm’s accounting profits, otherwise known as net income. Another method is to calculate the firm’s cash flow. The primary difference between these two methods lies in the selection of figures used in the calculations.

 

Cash flow, on the other hand, represents a company’s overall financial health. In order for a business to calculate their cash flow, they must

 

 

 

  1. What is incremental cash flow? Explain in detail.

Answer: The additional operating cash flow that an organization receives from taking on a new project. A positive incremental cash flow means that the company’s cash flow will increase with the acceptance of the project.

 

 

 

 

4 a. Explain the concept of managing risk.

Answer: The identification, analysis, assessment, control, and avoidance, minimization, or elimination of unacceptable risks. An organization may use risk assumption, risk avoidance, risk retention, risk transfer, or any other strategy (or combination of strategies) in proper management of future events.

Credit risk is risk due to uncertainty in a counterparty’s (also called an obligor’s or credit’s) ability to meet its financial obligations. Because there are many types of counterparties—from individuals to sovereign

 

 

  1. Describe the methods used by financial institutions to analyse risk.

Answer: In a project finance transaction a PPP Company would usually be set up by the sponsors solely for the purpose of implementing the PPP project. It will act as borrower under the underlying financing agreements and will be a party to a number of other project-related agreements. Guidance 1

The top-tier funding provided by lenders or capital market investors, usually referred to as “senior debt”, typically forms the

 

 

 

5 a. What are the types of project financing structure?

 

Answer:  Credit Appraisal Process:

Before a credit facility is sanctioned to any borrower firm, the proposal should be rigorously appraised. The appraisal process should involve an in-depth study of the financial, commercial, technical and managerial aspects of the borrower. An assessment of the financial requirement of the borrower should be made in order to arrive at the amount of credit to be considered by the bank. Even though the data supplied by the client is the base data for

 

 

 

  1. Explain about the project appraisal by financial institutions?

Answer: The term loan appraisal and its processing requires careful scrutiny in view of the complexities involved. The essence of the term loan appraisal is to assess the ability of the unit to repay the loan and interest, from the surplus generated by utilizing the fixed assets acquired. For this purpose, the techniques of project appraisal should be employed in all cases irrespective of loan amount or whether it is considered for the purchase on

 

 

6 a. Explain in detail the different forms of project organisation.

Answer: The current types of organizational structure of project management are: functional organizational structure, project-based organizational structure and matrix organizational structure.

 

  1. Functional organizational structure.

Functional organizational structure is to be managed in the current organization hierarchical structure, once the project begins operation, the various components of the project are taken by the functional units, each unit is responsible for its charged

 

 

 

 

  1. Discuss project planning along with life cycle of a project.

Answer: The Project Planning Phase is the second phase in the project life cycle. It involves creating of a set of plans to help guide your team through the execution and closure phases of the project.

 

The plans created during this phase will help you to manage time, cost, quality, change, risk and issues. They will also help you manage staff and external suppliers, to ensure that you deliver the project on time and within budget.

 

 

Dear students get fully solved assignments

Send your semester & Specialization name to our mail id :

help.mbaassignments@gmail.com

or

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