MBA PROGRAM

MASTER OF BUSINESS ADMINISTRATION

PROJECT EVALUATION & ANALSIS (MBA 762) –TAKE HOME EXAMINATION

NAME: _____________________________________ID NO: ___________SECTION: _____

Instructor’s Name  Instructor’s Name 

Abebaw Kassie (Ph.D) Chala Dechassa (Ph.D)
projectanalysis9@gmail.com firichala@gmail.com

Instructions: Please carefully read the instructions below

1 The exam must be taken completely alone. Checking your exam answers or discussing any of
the materials or concepts with any other person is forbidden. If the students’ exam answers
are found the same, it shall be voided automatically
2 You can work on the exam for 48 hrs. Please submit the exam answer file typed in a word
document or scanned image to your course instructor via email only BEFORE 1:59 PM ON
TUESDAY, MAY 12, 2020. Unequivocally no postponements - Late submissions are totally
unacceptable. The only option for submission is by email. Email problems will not be
accepted for any case. It is your responsibility to make sure that your email works properly
and that your instructors receive the submission on time.
3 While sending the email, write your section and program (extension/weekend) in the
subject line
4 Once exam answer file is submitted for grading, no requests for amendments or
supplements will be permitted.
5 Once you submit your exam answer file, you will receive a confirmation email from your
course instructor. If you have not received confirmation email within two hours of sending
your email, please contact your instructor.

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 Date: May 10, 2020
Maximum Mark: 50%

GENERAL DIRECTIONS
 This Exam Booklet Contains TWO Parts.
PART I: Conceptual Questions (30 Points)
PART II: Mini-Case (20 Points)
 Read the Instructions for Each Part and Answer the Questions Accordingly.
 The Use of Calculator is Allowed
 Use the following email address to send your examination to Abebaw Kassie, PhD:
projectanalysis9@gmail.com and Chala Dechassa, PhD using firichala@gmail.com
 The assignment should be submitted in a “SINGLEWordDocument“only. No pdf, excel
or other format is accepted. Don’t send more than one document- the entire/complete
paper content should be in a single document!
 The cover page should contain:
 Name of the University, College, and the Department,
 Name, ID and Section,
 Examination Title (in uppercase letter), Place (Addis Ababa), and Date of
Submission (Month &Year)
 General Text Format:
 Font Size: 12,
 Spacing: 1.15,
 Top 2.5 cm (1-Inch)
 Bottom 2cm (0.8 Inch),
 Left 2.5(1-Inch).
 Right 2cm (0.8inch),
 Font Type: Times New Roman, and
 Paper Size: A4
 Attempt All Questions.

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PART I: CONCEPTUAL QUESTIONS

From the following short answer questions select and answer any six out of the eight questions
on the separate answer sheet provided [30 Points].

1. Projects particularly construction Projects, in many instances, face problems owing to:
cost overruns or schedule slippages; and ended with below their standards in terms of
quality & performance Tendaho Irrigation project is best example to this end. What do
you think are the major problems in project management practices that cause project
failure?(5 points)

2. A feasibility study is part and process of project identification, preparation and selection.
This process involves the appraising of projects or groups of projects and then choosing
to implement some of them. Consequently, it is critical part for projects that are
implemented by governments and big organizations (5 Points).
a) Why it is critical to these organizations? Rationalize and discuss its
importance by taking practical example?
b) Small business considers that undertaking project feasibility study is wasting
time and resource? Do you agree? Reason out
3. Think of a somewhat complicated task with which you are familiar and develop a work
breakdown structure for it. (Examples: a wedding, a high school reunion, a questionnaire
survey, a motion picture or stage play, etc.). Now do thesame for a complicated job with
which you are not very familiar. At what pointwould you need the assistance of
“functional managers” or specialists to helpyou break down subtasks?

4. Suppose you are assigned as a project coordinator in XYZ Company which is charged
with the responsibilities of undertaking a detailed feasibility study for setting up a cement
plant, how do you critically apply the necessary cycles of World Bank Project model in
the project? Critically examine each phase in the model.

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 5. Identify a project Idea and prepare a brief hypothetical feasibility and a business plan in
no more than three pages.

6. Choose a project that you are going to do or perhaps have just started.

7. “Project management is both an art and a science.” Comment.

8. Identify the roles and responsibilities of project managers in a construction industry.

PART II: WORKOUT QUESTIONS (20 Points)

Tango Business Solutions is considering a new product line to supplement its range line. It is
anticipated that the new product line will involve cash investments of $500,000 at time 0. Its
cash inflow of $1.1 million is expected in year 1; $250,000 in year 2, $300,000 in year 3,
$350,000 in year 4, and $400,000 each year thereafter through year 10. Although the product line
might be viable after year 10, the company prefers to be conservative and end all calculations at
that time.

If the required rate of return is 15 percent, what is the net present value of the project? Is it
acceptable? show the implication to the firm
a. What is the accounting rate of return of the project (ARR)show the implication to the firm
c. What is its internal rate of return (IRR)?Show the implication to the firm
d. What would be the case if the required rate of return were 12 percent?Show the implication
to the firm
e. What is the project's payback period?Show the implication to the firm

End of Paper!

Stay Safe!

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