Task 1:

Define the term ‘Project’. How will you classify the projects?

Answer:
A project is a temporary endeavor with a specific start and end, undertaken to create a
unique product, service, or result. Projects can be classified based on criteria such as size
(small, medium, large), purpose (commercial, social, technological), sector (construction, IT,
healthcare), and duration (short-term, long-term).

Task 2:
Define Project Management and outline its features clearly.

Answer:
Project Management is the application of knowledge, skills, tools, and techniques to project
activities to meet project requirements. Features include goal-oriented planning, organized
and planned execution, resource management, time-bound and budget constraints, risk and
issue management, and stakeholder involvement.

Task 3:
What can a firm do to stimulate the flow of Project Ideas?

Answer:
A firm can encourage creativity and innovation, conduct market research, foster
collaborative environments, implement suggestion schemes, and invest in employee
training and development to stimulate the flow of project ideas.

Task 4:
What factors influence the project ideas?

Answer:
Factors influencing project ideas include market demand, technological advancements,
economic trends, competition, customer needs and preferences, regulatory changes, and
social and environmental factors.

Task 5:
What do you understand by project identification?

Answer:
Project identification involves recognizing and defining a potential project based on its
feasibility, relevance, and alignment with strategic objectives. It includes assessing needs,
opportunities, and problems that the project aims to address.
Task 6:
Calculate the net present value (NPV) of the project at discount rates of 10%, 20%, 30%,
and 35%. Compare the projects and decide what is the most effective.

Answer:
The calculation of NPV for projects A, B, and C at discount rates of 10%, 20%, 30%, and 35%
involves discounting the future cash flows and subtracting the initial investment. The
comparison of NPVs will determine the most effective project.