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BEP712S - SME PROJECTS - 1ST OPP - NOV 2024 |
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n Am I BI A u n IVE Rs ITY
OF SCIEnCE Ano TECHn0L0GY
FACULTY OF COMMERCE, HUMAN SCIENCESAND EDUCATION
DEPARTMENT OF GOVERNANCE AND MANAGEMENT SCIENCES
QUALIFICATION: BACHELOR OF BUSINESS MANAGEMENT HONOURS
QUALIFICATION CODE: 07BBMA
LEVEL: 7
COURSE CODE: BEP712S
COURSE NAME: SME Projects
SESSION: NOVEMBER 2024
DURATION: 3 HOURS
PAPER: THEORY (PAPER 1)
MARKS: 100
FIRST OPPORTUNITY EXAMINATION
EXAMINER(S) Ms. B. NDUNGAUA
Mr. V. SINALUMBU
MODERATOR MR. KANDJIMI
INSTRUCTIONS
1. Answer ALL the questions.
2. This paper comprises of FIVE questions.
3. Read all the questions carefully before answering.
4. Number the answers clearly
PERMISSIBLE MATERIAL
CALCULATOR
THIS QUESTION PAPER CONSISTS OF_ 4_ PAGES (Including this front page)
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QUESTION 1
[16 Marks]
Develop a project Network diagram using the below information.
Activity
A
B
C
D
E
F
G
H
Project name: Automated Warehouse
Order Picking System
Description
Preceding Activity
Define requirements
None
Assign Team
A
Design Hardware
A
Code Software
B
Build and Test hardware
C
Develop Patent Request
C
Test Software
D
Integrate systems
E,F,G
QUESTION 2
(22 Marks]
You are required to select one of two appealing project proposals. Using the below information,
which project proposal should be selected?
Project A requires an investment of N$350,000 with an expected annual cash inflow of
N$95,500 for five years while Project B requires an investment of N$485,000 with an expected
annual cash inflow of N$150,000 for five years as well. The expected rate ofreturn is 15%. The
company has a policy that only projects with a payback period of 2 years and 6 months and less
should be selected for consideration.
1) Determine the payback period for each of the projects. (4 marks)
2) Which of the two projects should be selected based on the payback period method?
Explain your decision. (2 marks)
3) Determine the Net Present Value (NPV) of each of the projects. (14 marks)
4) Which ofthe two projects should be rejected based on the NPV? Explain your decision.
(2 marks)
QUESTION 3
(20 Marks]
With the aid of practical example narrate possible discussions that happen during the post
project evaluation meeting.
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QUESTION 4
[19 Marks]
Project A has a duration of 20 weeks and with a total budget allocation of N$350,000.
During a project implementation review done at week 11, it was established that N$220,000
was spent and only 50% of the work was completed.
Determine the following:
1. What is the earned value at week 11? {3 marks)
2. What is the cost variance at week 11? {3 marks)
3. What is the cost performance index of this project at week 11? (3 marks)
4. Calculate the forecasted cost at completion at week 20. {3 marks)
5. In order to complete the project on budget, what is the To-Completion Performance
Index? {3 marks)
6. Elaborate how/what should be done in order to improve the project's Cost
Performance Index (CPI)? (4 marks)
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QUESTION 5
[23 Marks]
a) Calculate the Early Start (ES),Early Finish (EF), Latest Start (LS)and Latest finish (LF)times respectively. Will this project finish in 80
days? [16 marks for start and finish times]. Present your answers in a proiect schedule.
b) Calculate slack for each activity and identify the critical path. [2 marks for slack and 2 marks for the critical path]
c) Assuming activity H's actual completion is delayed by 8 days, when will activities J's and K's earliest start be? [3 Marks]
Activity A
John I IO
Activity D
Uno 7
Activity F
6 Sue
5
Activity G
----.
I 15
I~ Activity C
/l'IA""'I I13
Activity B
I 2 Sue 110
j Activity E
I
5 I Lee I 5 I
I
I
•
Activity H
8 Mary 15
I Activity I
/ I Io I Shetu I 18
/
1/II I \\ I Activity K
12 K•""' 4
j Activity J
I 11 LVija
5
4