St.

Mary's University

School of Graduate Studies

Corse Content Based Assignment 2. (Exam Type Questions)

Course Name: Project Management

Time Allowed: 48 Hours from the receipt of the questions via email;

Maximum Mark allotted 20%

Name_________________________________ID No. ___________________Sec. ________

Instructions:

 Attempt all questions for yourself;

 Write your answers on the answer sheet provided next to each question;

 Substantiate your answers with practical examples, if any;

 Write your name, ID No. and section on the cover page;

F Send your answer sheet via email on or before 48 hours from of the questions using the following

address: [email protected] ; and

 Never use a return email as the answer will be shared among all student.

GOOD LUCK!!!

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PART I. SHORT ESSAY TYPE QUESTIONS (3 marks)

Instructions: Read the following two questions and explain all with the necessary level of details

1. What is the importance of economic analysis in project appraisal? Explain the timing when it is
expected to be conducted by relating it with the project proposal you are preparing for the
fulfillment of this course (1.5 Marks).

Answer Question Number 1

2. Explain briefly the rationale behind using Logical Framework Analysis in project planning.
What were the activities you have done as part of the Logical Framework Analysis in the
project proposal you are preparing for the fulfillment of this course (1.5 Marks).

Answer Question Number 2

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PART II: CASE TYPE QUESTIONS: (6 marks)
Instructions: Attempt the following questions by explaining each with due details.

Case 1.

Suppose you are assigned as a project manager that plans to build a complex Alternate Channel banking
for Abat Bank. During the execution of the project, your team has run into a deep crisis. The project’s
goal and objectives have been challenging right from the start, but now you have discovered that your
team members have become increasingly unaware of them. Being busy solving detail problems, they often
fail to understand the overall requirements. Then they develop solutions which resolve issues in their area
of limited responsibility, while causing new problems at the interfaces with other system components.
Meanwhile, the team members show signs of growing frustration, and time is running away.

Question# 1. Based on the information given in case 1, how can you help your team in this situation?
Explain your answer with practical examples (3 marks).

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Case 2

Assume you are assigned by your boss to lead Tana Beles hydro power dam
planned to be the extension of GERD. During the plan risk management process your
project team has discovered 100 project risks and 10 major causes of those risks. The project is part of a
major program within the Abay River Development initiative. The project team is very experienced that
has worked together with the sponsor for several years and they are very supportive of your efforts.
Significant time has been spent to ensure the project scope and WBS is complete and it has been signed
off by all the key stakeholders. Unfortunately, your team has not been able to determine an effective way
to mitigate or insure against one of those major risks. It is something that must be done by the internal
team and cannot be outsourced. It also cannot be cancelled from the project.

Based on the information given in case 2, answer the following question (3 marks).
Question# 1. As a project team leader, what would be the best solution to this problem? Is it to transfer
the risk, to avoid the risk, to investigate ways to mitigate the risk or to accept the risk? Why? Explain
your answer with practical examples.

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Part II. WORK OUT QUESTIONS (11 marks)

Instruction: Attempt all of the following questions by showing all necessary steps.

Instruction: Attempt all of the following questions by showing all necessary steps.
1. Adwa Industries has four potential projects all with an initial cost of $2,000,000. The capital
budget for the year will only allow Adwa industries to accept one of the four projects. Calculate
Net Present Value for each project based on the given the discount rates and the future cash
flows of each project. And decide which project should Adwa Industries accept?
Year Project 1 Project 2 Project 3 Project 4
1 $500,000 $600,000 $1,000,000 $300,000
2 $500,000 $600,000 $800,000 $500,000
3 $500,000 $600,000 $600,000 $700,000
4 $500,000 $600,000 $400,000 $900,000
5 $500,000 $600,000 $200,000 $1,100,000
Discount Rate 6% 9% 15% 22%
Based on the data given in question 1, answer the Questions bellow.

Question #1. Calculate Net Present Value for each project based on the given the discount rates and the
future cash flows of each project. And decide which project should Adwa Industries accept? (4 marks)
Project 1. Project 2.

Decision: ______________________ Decision: ______________________

Project 3 Project 4

Decision: ______________________ Decision: ______________________

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 2. Suppose you have planned to use Birr 280, 000.00 to finalize Planet project work package which
is scheduled to be finalized today. Your analysis revealed that the actual expenditure to date is
Birr 240,000 and 80% of the work is completed. Based on this information answer questions 3a-
3e (3 Marks).

Question 2a. Calculate the Cost Question 2b. Calculate the Question 2c. Calculate the
Performance Index (CPI) Schedule Performance Index Estimate to complete (ETC)
(SPI)

Question 2d. Calculate the Estimate Question 2e. Calculate the aadditional budget needed to complete the
remaining task assuming your current performance remain unchanged
at Completion (EAC)

3. A project work schedule that has five activities had been performed 15 times in the past. The
time required ranged between 1 week and 15 weeks, and the frequencies as well as the
interdependence of the activities are presented in the table below (5 marks).

Activities, time taken, frequency and interdependence.

Time taken in weeks

Activity Pessimistic Most likely Optimistic Interdependence

1 13 10 3 1 must be finished before 3 starts
2 12 5 3 2 must be finished before 3 starts
3 15 10 5 3 must be finished before 4 starts
4 11 6 3 4 must be finished before 5 starts
5 10 5 1 5 must be finished to reach to 6

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 6 It is End of project work schedule

Based on the data given in question 3, answer Questions # 3a and #3b.

Question# 3a. Estimate the time duration for the 5 activities based on probabilistic
approach (2 marks)

Question# 3b. Identify the activities on the critical path and estimate the minimum total
weeks needed to complete the 5 activities on the work schedule to reach to the final node
(i.e 6). (2 Marks)