Bhavnagar University 2007 M.B.A Management of Information Systems PROJECT FINANCE - Question Paper

M.B.M. DEGREE EXAMINATION, DECEMBER 2007.
PROJECT FINANCE

Time : 3 hours Maximum : 100 marks
PART A — (5 ? eight = 40 marks)
ans any 5 ques..
every ans need not exceed one page.
1. Explain the role of consultants in project management.
2. Explain
(a) GDRs (b) ADRs
(c) FRBs (d) IPOs.
3. What do you mean by capital gearing? How would you appraise a project based on it?
4. What are the principles for measuring costs and benefits of a project?
5. How will you evaluate a project based on financial implication?
6. Bring out a typical planning and scheduling of a project.
7. What are the advantages and disadvantages of IRR method as an appraisal criterion?
8. What is venture capital? How far it facilitates for the success of a project?
PART B — (4 ? 15 = 60 marks)
ans any 4 ques. not exceeding five pages every.
9. What factors you would consider for project identification, formulation and evaluation?
10. Explain :
(a) Debt-Equity Ratio
(b) Security margin
(c) Working capital
(d) Seed capital
(e) Profitability Index.
11. The subsequent info is about the cash flow and abandonment value of a project.
Y0 Y1 Y2 Y3 Y4
Cash flow (Rs.) 4,00,000 10,000 15,000 15,000 8,000
Abandonment value 33,000 25,000 10,000 4,000
Assume a discount rate of 10% and ans the subsequent ques. :
(a) What is the economic life of the asset, if it is not repeated?
(b) If the asset has to be changed everytime it is abandoned, then will your ans change? Why?
(c) If the abandonment values in years three and four are changed to over Rs. 23,000 and Rs. 10,000 respectively, will your ans to the ques. above (a) and (b) change?
12. Describe the role of BIFR in project monitoring.
13. What are the different sources of finance for investing in a project?
14. Explain the concept, application and stages of UNIDO approach for project valuation.

Earning:   Approval pending.