Gokhale Institute of Politics and Economics

(Deemed to be University u/s 3 of the UGC Act, 1956)

Pune 411 004
M.Sc.(Financial Economics) 2021-2023
Semester:- January – April 2023
Periodical Test III
FE-A-116: Project Appraisal and Finance
Sunday Time: 03.00 p.m. to 04.00 p.m.
February 09, 2023 Max. Marks: 20

Q.1 Attempt any 4 out of 5 (10)

1) What is the important role of a project accountant?
2) What is process for appointing contractors?
3) Compare PERT / CPM/ Gantt Chart.
4) What are the advantages of activity based costing?
5) What is the financial appraisal of a project?

Q.2 a) Attempt any one of the two (5)

1) What is the Relevance of supply chain management to project

management?

2) What are the latest guidelines of IRDAI reg. surety bonds?

b) MCQ (each for ½ marks) (5)

i) Project appraisal enables :

(a) To Know Cost Benefits (b) Technical Feasibility
(c) Economic & Environmental Viability (d) All Of The Above.

ii) As a result of poor project appraisal :

(a) We May End Up With No Demand For The Project
(b) We May Incur Losses
(c) We Will Save Money
(d) A & B

iii) The appraisal techniques used are :

(a) NPV & IRR (b) BCR
(c) Sensitivity analysis (d) All of the above

iv) Project is acceptable if BCR is more than 1

(a) True (b) False

v) Project is acceptable if
(a)NPV is positive (b) NPV is Negative
(c) NPV is zero (d) None of the above

1
 𝐒𝐮𝐦 𝐨𝐟 𝐭𝐡𝐞 𝐝𝐢𝐬𝐜𝐨𝐮𝐧𝐭𝐞𝐝 𝐛𝐞𝐧𝐞𝐟𝐢𝐭𝐬
vi) Benefit cost ratio = 𝐒𝐮𝐦 𝐨𝐟 𝐝𝐢𝐬𝐜𝐨𝐮𝐧𝐭𝐞𝐝 𝐜𝐨𝐬𝐭

(a) True (b) False

vii) Rule for BCR for a project is

(a) BCR >| accept (b) BCR = 1 indifferent
(c) BCR <| reject (d) All of the above

viii) PERT and CPM are

(a) Same (b) Different

ix) ‘ABC’ method is for

(a) Indirect costs (b) Direct costs

x) IRDAI has recently made statutory for contractors to have surety bond
(a) True (b) False

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