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Master of Business Administration - MBA Semester 3
PM0012-Project Finance and Budgeting
(Book ID: B1938)
Assignment (60 Marks)
Note: Answers for 10 marks questions should be approximately of 400
words. Each question is followed by evaluation scheme. Each Question
carries 10 marks 6 X 10=60.
Q1. Explain different requirement of resources in a project. Identify
the resources that may be required in a telecommunication project.
Answer. 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. According to
Project Management Institute,

Q2. Answer the following questions:

1. What is a Letter of Intent (LOI)? What is its purpose?
2. What are the basic features of EPC (Engineering, Procurement and
Construction) contracts? Give any 4 advantages of entering into an
EPC contract?
1. a. Define LOI
b. List any 4 purposes of LOI
2. a. briefly explain the 3 basic features of EPC contracts
b. List any 4 advantages of entering into EPC contracts
Answer. a. A Letter Of Intent (LOI) may be defined as an agreement
between two or more parties to do business together before signing the

contract. It signifies an intention to do the business at later date. It is the first

step in negotiation of a commercial transaction to agree upon the business
terms of the transaction.

Q3. Explain the different key project documents.

Answer. Project management can create a lot of paperwork, and its not
always the stuff you want or need. Lets talk about the essentials. Here are
nine documents that no self-respecting project should be without.
Q4. Write short notes on:
Developments in financing of construction projects in India.
Importance of cost of capital in project selection.
Principles employed by organisations to manage working capital
Answer. Developments in financing of construction projects in India:
Indian construction is in a nascent stage as compared to other developed
countries, such as US or UK. India lacks in basic constructions, such as
highways, airports and seaports. The Indian government is striving to

Q5. What are the problems associated with BOOT projects.

Answer. Build, Own, Operate, Transfer (BOOT)
A BOOT funding model involves a single organisation, or consortium (BOOT
provider) designing, building, funding, owning and operating the scheme for a
defined period of time and then transferring this ownership across to an agreed
party.
Customers enter into long term supply contracts with the BOOT operator and
are charged accordingly

Q6. What is project risk? List some risks associated with a

construction project and a telecom project. Discuss the similarities
and the differences.
Answer. Risk can be defined as any uncertain event that leads to losses. It is
the probability or threat of damage, liability, loss or any other negative
occurrence. A project risk is any event that may act as a constraint in
successful

Spring-2016

Get solved assignments at nominal price of

Rs.125 each.
Mail us at: subjects4u@gmail.com or contact at
09882243490