Schedule Performance Index
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PROJECT
MANAGEMENT
Total Marks: 80
Note : All Questions are
Compulsory
Each Question Carries Equal
Marks
CASE STUDY : 1
A project has begun on 1st
April 2005 and was expected to be completed by 31st December 2005. The project
is being reviewed on 30th September 2005. When the following information has
been developed. Budgeted Cost for Work Scheduled (BCWS) Rs. 60,00,000 Budgeted
Cost for Work Performed (BCWP) Rs. 55,00,000 Actual Cost of Work Performed
(ACWP) Rs. 58,00,000 Budgeted Cost for Total Work (BCTW) Rs.100,00,000 Additional
Cost for Completion (ACC) Rs. 50,00,000
Determine the following.
Q1) Cost variance
Q2) Schedule variance in
cost terms
Q3) Cost Performance Index
Q4) Schedule Performance
Index
Q5) Estimated Cost
Performance Index
CASE STUDY : 2
Praveen Bhargava, a Ph D in
molecular biology, is working as a professor in the International Science Institute,
based on this research work, he has developed an enzyme which he believes has
commercial potential. Praveen has set up Enzy Laboratories to commercially
develop the product. Enzy Laboratories has approached Gamma Venture Capital
with a funding request for Rs 200 million by way of equity. Gamma requires a
rate of return of 30 per cent from its equity investment in Enzy and its planned
holding period is 5 years. Enzy has projected an EBITDA of Rs 300 million for
year 5, which Gamma considers to be credible. Gamma believes than an EBITDA
multiple of 6 for year 5 to be reasonable. At the end of year 5, Enzy is likely
to have a debt of Rs 200 million and a cash balance of Rs 80 million.
Q1) What share in equity of
Enzy will Gamma ask for?
Q2) What factors generally
influence valuation of VC deals?
Q3) What incentive
mechanisms are usually incorporated in VC deals?
Q4) Discuss the
considerations an entrepreneur like Praveen Bhargava should bear in mind while approaching
a VC Fund?
CASE STUDY : 3
ABCL is a movie production
company set up by three persons with experience in the movie industry about six
years ago. One of them is a leading star and he owns 50 percent equity of ABCL.
The other two own 25 percent each. ABCL’s recent movie “The Dream” turned out
to be a blockbuster at the box office. Enthused by this success, the promoters
want to double the number of movies produced by the company. To achieve this
goal, the company plans to raise Rs 50 crore from external sources.
Q1) Discuss the term
equity?
Q2) Discuss the rights of
equity shareholder?
Q3) What are the advantages
and disadvantages of equity capital?
Q4) Suggest the financing
method that seems most appropriate for each situation and give your reasons for
the same.
CASE STUDY : 4
Janakiram is considering an
investment which requires a current outlay of Rs 25,000. The expected value and
standard deviation of cash flows are – The Cash flows are perfectly correlated.
Q1) Calculate the expected
net present value and standard deviation of net present value of this
investment, if the risk free interest rate is 8 per cent?
Q2) Discuss the risk
adjusted discount method?
Q3) Discuss the techniques
of risk analysis?
Q4) What are the advantages
of employing the probability distributions of key factors underlying investment
decisions? Year Expected Value (Rs) Standard Deviation (Rs)
1 12,000 5,000 2 10,000
6,000 3 9,000 5,000 4 8,000 6,000
Assignment Solutions, Case study Answer sheets
Project Report and Thesis contact
ARAVIND – 09901366442 – 09902787224
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