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Dom 402 Question Paper

Dom 402 

Course:Bachelor Of Commerce

Institution: University Of Nairobi question papers

Exam Year:2011



University of Nairobi
School of Business
Department of Management Science

DOM 402: PROJECT MANAGEMENT
March 17, 2011
Continuous Assessment Test Time: 6:00 – 7:20 PM
Answer all questions, write only what you have been asked to, not all that you happen to know about the subject or topic.
1)
a) Define a project, clearly distinguishing it from normal management. (4 marks)
b) With the aid of a diagram describe the project life cycle, including the level of effort required. (10 marks)
c) What are the duties and responsibilities of the project manager? (6 marks)

2)
a) A friend of yours has just returned from abroad with several web/internet based income generating project ideas and is very excited about them. He/she wants you as a partner. You however feel that some may not be relevant or even possible. Draft a possible weighted criterion for pre-feasibility analysis. (6 marks)
b) Assume that one of the ideas has been selected, and after full feasibility analysis, it has the following cashflows:

Year Outflows (000’s Kshs) Inflows (000’s Kshs)
0 2000
1 200 1400
2 400 1500
3 300 1700
4 300 1600

60% of the project cost is financed using a bank loan at 16%, while 40% is financed from personal savings by the directors. In the absence of this project, the savings could have been invested in 30 year government bonds at a 12 % rate of return.

Required:
i) Evaluate the project’s viability using at least two numeric methods and make a judgment on whether to proceed or not. Justify your reasoning. (12 marks)
ii) Are the methods you used in (i) above the best for such decision situations? How could you improve the quality of your decision? (4 marks)

3)


TOTAL: 50 MARKS






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