SMU MBA SEM 3 -PM 0012 – PROJECT FINANCE AND BUDGETING
SMU MBA SUMMER 2015 -2016
Dear Students,
SMU MBA SUMMER 2015-2016 Assignments are available. For Booking ,Kindly mail us on kvsude@gmail.com OR call us to +91 9995105420 or S M S your “ Email ID ” us in the following Format “ On +91 9995105420 we will reach back you with in 24H ”
DRIVE
SUMMER 2015
PROGRAM
MBAFLEX/ MBA (SEM 3)
SUBJECT CODE & NAME
PM 0012 – PROJECT FINANCE AND BUDGETING
BK ID – B1938
Q1. Write short notes on: 10 (2.5 marks each)
- Key project resources
- Three main requirements of funding a project through project finance
- Medium term financing for projects
- Bottom up estimation for creating project budget
Answer: Key project resources: Resources are required to accomplish project objectives. Without them, one cannot imagine to complete any project. They are the means or inputs to
produce valuable output and complete the scope set out to be achieved by the project. These resources can be people, equipment, facilities, funds or anything else required for the completion of a project. For example, in a
Q2. What is off take contract? Explain the various types of off take contracts. (Describe the off take contract, where is it used, how it helps the organisation, when is it negotiated, Discuss the SIX types of off take contracts) 4, 6
Answer: Off take contract: In an off take contract, there is an agreement between the project company and the buyer. It is negotiated much before the construction of the facility in order to make the market secure for the future output of the facility. This contract provides the project company stable and sufficient revenue which helps in paying its project debt obligation, covering the operating costs and
Q3. Explain the different key project documents. (Description of key project documents.) 10
Answer: Key Project Documents: According to John Rakos “The success of any project is crucially dependent on the documents produced for it.” It is very essential for any project manager to keep proper documentation for the project for effective management. These documents help to know the various aspects of the project whenever needed during the life of the project. These
Q4. Write short notes on: 10 (2.5 marks each)
- Project parties in a construction project
- Types of working capital
- Project cash flows
- Payback period method used to evaluate an investment on a project
Answer: Project Parties: A project cannot be completed by a single person as it involves work which
needs people with expertise in different areas. Different people who are associated with the project are called
Q5. What are the problems associated with BOOT projects.( Explanation of the main problems associated with BOOT projects, Conclusion ) 9, 1
Answer: Problems in BOOT Projects: Although BOOT model is beneficial for certain projects, there are many risks and problems associated with it and may act as a constraint in the implementation of these projects. The main problems associated with BOOT projects are as follows:
- There are problems with BOOT projects in reaching the construction stage. There may be many reasons for this. One of those reasons may be unavailability of experienced
Q6. Explain the different types of management contracts (a type of PPP) . (List the types of management contracts , Explain each type of management contract ) 1, 9
Answer: Management contracts: It is a type of PPP in which the public sector enters into an agreement with the private sector for managing a whole or a part of a public enterprise. In such a contract, the ownership is retained by the public sector. Management contract allows the public sector to take advantage of the skills and expertise of the private sector in labour management and procurement,
SMU MBA SUMMER 2015 -2016
Dear Students,
SMU MBA SUMMER 2015-2016 Assignments are available. For Booking ,Kindly mail us on kvsude@gmail.com OR call us to +91 9995105420 or S M S your “ Email ID ” us in the following Format “ On +91 9995105420 we will reach back you with in 24H ”