Rizvi Institute of Management Studies & Research
Internal Assessment Examination
Project Management M.M.S. Semester IV (2024-25)
Total Marks : 60 Duration : 3hrs
Note:
a. There are in all seven questions.
b. Question No. 1 is Compulsory.
c. Attempt any four questions out of the remaining five questions from Q2 to Q7. All
questions carry 10 marks each.
d. Specify the question number clearly that you attempt.
Q.1 a. (10M)
Consider a project with following details. Use Crashing or project compression
technique to reduce project duration by 3.
Activity Predecessor NT NC CT CC
A - 4 33 3 34
B - 6 37 5 44
C A 5 13 4 17
D A, B 12 61 12 61
E C 11 35 8 53
F D, E 6 37 5 39
G D 8 37 8 37
H E 9 58 8 64
I F, G 6 13 4 31
J F, H 12 25 10 45
K I, J 10 23 8 43
Q.1 b. (10M)
A company will launch new product with life of 3 years. All units produced are sold in same
year. Sales quantity for year 1 is 10000 units which will increase by 1000/year. Selling Price
for year 1 is 200 and it will increase by 7/year. Operating cost/unit for year 1 is 23 which will
increase by 2/unit each year. Project is financed by Equity 12 lakh and Term Loan 12 lakh
which carries interest at rate 8% per year and loan is to be repaid in 3 years by Equal Annual
Installment. Interest for the year will be charged on Opening balance of loan of that year. The
Project assets are Land 2 lakh and depreciable FA 22 lakh. Depreciation is charged at 20% per
year by Written Down Value (WDV) method. Income tax is 35 %. Calculate Debt Service
Coverage Ratio (DSCR) and Interest Coverage Ratio (ICR) for all 3 years.
Q 2. (10M)
Consider the data given below of a small part of project. The actual performance is measured
at end of 5 months in terms of percentage actual completion and actual cost incurred. Calculate
cost performance index and schedule performance index, schedule variance, cost variance.
Calculate revised project duration and cost.
Activity Precedence NT NC AC % Actual
Completion
A - 4 6 6 100
B - 12 15 6 40
C - 4 3 3 95
D A 10 15 2 7
E C 6 10 0 0
F A 14 11 8 7
G B,D,E 8 10 0 0
Q 3. (10M)
(a) Calculate Internal Rate of Return if investment is 200 &cash inflows for 2 years are 120
& 144.
(b) Initial investment in a project is Rs. 10,00,000. Its cost of capital is 10%. The cash inflows
generated by this project for next 5 years are as follows.
Year 1 2 3 4 5
Cash 6,00,000 3,00,000 2,00,000 5,00,000 5,00,000
Inflows(Rs.)
Determine:
i. Payback Period
ii. Post payback Profitability
iii. Net Present Value
iv. Discounted Payback Period
v. Profitability Index
Q 4. Attempt any TWO sub-questions (10M)
The demand for an item is observed for 15 months and is recorded as shown below
Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Demand(in 280 288 266 295 302 310 303 328 309 315 320 332 310 308 320
units)
a. Calculate the exponentially smoothed forecast for α = 0.3. The initial forecast for the first
month is 285 units. Also calculate MAD, MSE and MAPE.
b. Calculate 3 monthly weighted moving averages as forecasts taking weights as 3, 2, 1 and for
the three months assigning highest weight to the most recent value. Also calculate MAD, MSE
and MAPE.
c. The past demand for 6 months is given of a product,
Month 1 2 3 4 5 6
Demand 132 129 127 136 134 132
Using simple linear regression method, calculate sales for 7th month.
Q 5. Solve any TWO sub-questions: (10M)
The utility data for a network are given below:
Activity 1-2 1-3 2-3 2-4 3-4 3-5 4-5 4-8 5-6 5-7 6-7 6-8 7-8
Duration 8 10 4 0 5 6 4 8 5 7 3 5 3
(Months)
i. Draw network diagram and find Critical Path & Critical Time.
ii. Find EST, EFT, LST & LFT for each activity.
iii. Find Total Float, Free Float, Independent Float & Interference Float for all
activities.
Q 6. Solve any TWO sub-questions: (10M)
The TaCo Iron and Steel Company is expanding its operations in Maharashtra to include a new
drive-in weigh station. The weigh station will be a heated / air-conditioned building with a large
floor and small office. The large room will have the scales, a 15-foot counter, and several
display cases for its equipment. Before erection of the building, the project manager evaluated
the project using PERT / CPM analysis. The activities with their corresponding times were
recorded in the table below:
Activity Description Optimistic Pessimistic Most Likely Preceding
Time(Weeks) Time (Weeks) Time (Weeks) Tasks
A Lay 6 30 12 -
Foundation
B Dig Hole for 4 28 10 -
scale
C Insert scale 12 60 24 B
bases
D Erect frame 4 16 10 A,C
E Complete 10 34 22 D
building
F Insert scales 66 66 66 E
G Insert display 6 54 18 E
cases
H Put in office 2 14 8 G
equipment
I Finishing 8 56 38 E,H
touches
i. Determine the Critical path and project duration.
ii. Determine free float for all activities.
iii. Determine the project duration so that project completion probability will be 85 %
Q 7. Attempt any TWO sub-questions: (10M)
i. S Curve
ii. Compare PERT and CPM
iii. WBS
iv. DPR
Z Table
