NATIONAL OPEN UNIVERSITY OF NIGERIA

PLOT 91, CADASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI– ABUJA
FACULTY OF MANAGEMENT SCIENCES
DEPARTMENT OF ADMINISTRATION
NOVEMBER2018 EXAMINATION
COURSE CODE: MBA851 CREDIT UNITS: 3
COURSE TITLE: PROJECT EVALUATION
INSTRUCTION: 1. Indicate your Matriculation Number clearly
2. Attempt question one (1) and any other three (3) questions – four
questions in all
3. Question one (1) is compulsory and carries 25marks, while the
other questions carry 15marks each.
4. Present all your points in coherent and orderly Manner
TIME ALLOWED: 2 ½ Hours

1a)Explain a project cycle (5marks)

b)Describe the sequences of a project cycle (5marks)
c)Explain the sources of new project ideas (5marks)
d) List and explain any five items that you hope to find in the checklist of the management
segment of a project evaluation (5marks)
e) Mention and explain any five factors affecting the location of projects. (5marks)

2a) Explain the three concepts of plant capacity which include:

Installed capacity
Attainable capacity
Actual capacity (5marks)
b) Explain the concept engineering evaluation (5marks)
c) Why is engineering evaluation of a project important? (5marks)

3a) Explain manpower planning and evaluation (5marks)

b) Discuss its practical application in industry (5marks)
c) Why is a manpower plan important in a start-up project? (5marks)
4a) What is demand analysis? (2 marks)
b) Explain the supply equation and its relevance (3 marks)
c) List and explain with the aid of schematic diagram the five basic forces that govern
competition in an industry (10 marks)

5a) List fourmajor stakeholders that require projected income statement and why?(4marks)
b) State any four expense items that can be found in a projected income statement(4marks)
c) Discuss the components of a balance sheet (5marks)

6a) Why are the discounted cash flow (DCF) technique better and more acceptable than the
traditional methods of project evaluation? (5marks)
b) A project costs N100,000 and has a scrap value of N40,000. The stream of income before
depreciation and taxes are N40,000, N50,000 and N60,000 for the first three years. The tax
rate is 50% and depreciation is on straight line basis. Calculate the accounting rate of return
for the project.