PM0012 – PROJECT FINANCE AND BUDGETING

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ASSIGNMENT

DRIVE SUMMER 2014
PROGRAM MBADS (SEM 3/SEM 5) MBAFLEX/ MBA (SEM 3) PGDPMN (SEM 1)
SUBJECT CODE & NAME PM 0012 – PROJECT FINANCE AND BUDGETING
BK ID B1938
CREDITS 4
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. Write short notes on:
  • Lump sum contract
  • Project Cost Profile
  • Trade credit
  • Types of project resources

(Lump sum contract Project Cost Profile Trade credit Types of project resources)10 (2.5 marks each)

 

Answer: Lump sum contract

A lump sum contract is an agreement in which one party consents to pay another party a set dollar amount for completing the work or providing the goods described in the agreement. Typically, such contracts do not require contractors to provide a detailed breakdown of costs, but rather, the payment of the total

 

 

Project Cost Profile

A project profile defines a set of privileges for access to project-specific information. Project profiles are assigned to users based on the OBS hierarchy. To control access to project-specific information, you create project profiles, and then

 

Trade credit

Trade credit is an agreement where a customer can purchase goods on account (without paying cash), paying the supplier at a later date. Usually when the goods are delivered, a trade credit is given for a specific amount of days – 30

 

 

Types of project resources

 

In project management terminology, resources are all the items that are required to carry out the project activities. They include people, equipment, facilities, time, money, or anything else required for the completion of the project. All

 

  1. Discuss the financing of telecommunication projects.

(Explain the financing of telecommunication projects and, Discuss the factors needs to be considered while financing a telecommunication project)2, 8(2 marks for each factor)

 

Answer: Telecom projects are characterized by their continual investment requirements. Networksare installed for a particular subscriber capacity. As subscriber demand increases,operators need to make further investments to cater to the increased demand. Hence, a10-year cellular license will often have a 10-year investment plan. This leads to thequestion of what exactly is the project cost. Usually, the investment

 

 

  1. Do lenders, sponsors, EPC contractors, and the government require project insurance? Explain

(Give your opinion is project insurance required by lenders, sponsors, EPC contractors, and the government, Provide justification to your answer from perspective of lenders, sponsors, EPC contractors, and the government)2, 8 (2 marks for each perspective)

Answer: In project finance there is a substantial degree of reliance placed on the performance ofthe project itself and as a result there is much emphasis on its feasibility and its sensitivityto various forms of risk. Unlike other forms of financing arrangement project finance isnot primarily dependent on the credit support of the sponsors or the value of the physicalassets1 and its debt payment is secured on the cash flow of the project

 

 

 

  1. Write short notes on:
  • Expected Monetary Value (EMV)
  • Earned Value Analysis (EVA)
  • Optimal capital structure
  • Net Present Value(NPV) method of capital budgeting

(Expected Monetary Value (EMV) Earned Value Analysis (EVA) Optimal capital structure Net Present Value(NPV method of capital budgeting)10 (2.5 marks each)

 

Answer: Expected Monetary Value (EMV)

The expected value from performing an action. It is calculated by assigning a probability and a value to each possible outcome and multiplying together. The results are then added together to obtain a value.Before we dive into

 

 

Earned Value Analysis (EVA)

Earned value analysis is an approach for measuring how much work has been completed in a project at given point of time and performance. This analysis can be done by calculating how much time, the work has taken and the

 

 

Optimal capital structure

The best debt-to-equity ratio for a firm that maximizes its value. The optimal capital structure for a company is one which

 

 

Net Present Value(NPV)  method of capital budgeting

The difference between the present value of the future cash flows from an investment and the amount of investment. Present value of the expected cash flows is computed by discounting them at the required rate of return.

 

 

 

  1. Explain the role played by engineering advisors in project finance.

(Explanation of the nature of the role played by engineering advisors in project finance, Summarization of the role played by engineering advisors according four phases of activities)2, 8 ( 2 marks for each phase)

 

Answer: In many PPPs, we observe that Governments have a clear incentive to require unrealistically high levels of investment, instead of requiring appropriate investment with improved operational efficiency. Political

 

  1. Define PPP (Public Private Partnership) and list the advantages and disadvantages of PPP .

(Define PPP, List advantages of PPP, List disadvantages of PPP) 1,5, 4

 

Answer: There is no broad international consensus on what constitutes a public-private partnership (PPP). Broadly, PPP refers to arrangements, typically medium to long term, between the public and private sectors whereby some of the services that fall under the responsibilities of the public sector are provided by the private sector, with clear agreement on shared objectives for delivery of public infrastructure and/ or public

Dear students get fully solved assignments

Send your semester & Specialization name to our mail id :

 

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