Week 1 group assignment
• Assignment must be submitted only in word document over email on or before 25 Sep 2019 (Wed)
• Late submissions would carry 10 marks penalty (would be subtracted from actual)
• Submissions after 28 Sep 2019 (Saturday) are not considered for evaluation.
• For mathematical questions, steps are important and carry marks. Pl highlight final answers
• Assignment file naming convention: Group Name_Week#_assignment. Coordinator shall email
assignment to me with members copied.
• If the answers found copied / lend copied by other groups, no marks shall be given
QI Choose one BEST answer [5 marks]
One mark for each right answer. No negative marking.
Caution: more options may look right, but judiciously choose the best.
# Question
1 You are involved in the activity of designing an affordable car for lower middle-class people. This would be a
A. Program
B. Project
C. Production
D. Portfolio
2 Which is not true about project life cycle?
A. Clustering of related activities into phases and interconnection of phases from project start to end
B. Same for all projects
C. Allow project management by stages
A. Phase end provides a logical point to critically review the project for continued viability
3 One potential disadvantage of matrix organization is:
A. Highly visible project objectives
B. Rapid response to contingencies
C. Team members must report to more than one boss
A. The matrix organization creates morale problems
4 Your organization has a policy that any project changes that increase the project’s budget by more than 1.5% must
be signed off by the PMO. You have a change that was requested by the customer that will increase the budget by
3%; however, the customer has offered to pay for all of this change and does not want to slow it down. Which
option represents the BEST choice?
A. Approve the change yourself and take it to the PMO after the work is underway
B. Ask the customer to take the change to PMO and explain the situation
C. Take the change to the PMO
A. Do not allow the change since it increases the budget by over 1.5%
5 The program manager is asking why your project is scheduled to take 16 months. He claims that pervious projects in
the organization were able to complete in less than half of that time. What would be the BEST thing to do?
A. Look for historical information on the previous projects to understand them better
B. Refer the program manager to the schedule management plan
C. Refer the program manager to the project management plan
D. Explain to the program manager that estimates should always err on side of being too large
Q II Multiple choice questions [10 marks]
Each right selection would fetch one mark. No negative marking.
Only first required selections would be evaluated.
Caution: more options may look right, but judiciously choose the right options.
# Question
I Identify 4 correct statements regarding project [4 marks]
A. All projects are identical
B. Quality and performance are determined at close of the project
C. It has an identifiable beginning and end time
D. It is usually a repetitive task without a goal or objective
E. It is team work. Coordination & Communication within the team and with the environment is essential for
accomplishing project objectives
F. It is a permanent activity as they have well defined goals and objectives
G. Projects are crucial for future of the organization
H. For a big project, we shall have more than one project manager
I. Product success is achieved by meeting all three (scope, time & cost) baselines
J. Projects might trigger changes in the organization
II Identify 3 wrong statements regarding MATRIX type of organization [3 marks]
A. Functional manager is responsible for competency development and should ensure that skilled people are
available to the projects
B. In weak matrix, the power of functional manager is weaker compared to Project Manager
C. Matrix organization is blend of functional and projectized organization to get best of both.
D. In weak matrix, the project manager power is similar to that of project coordinator
E. Functional unit can deploy people to any portfolio project
F. Team members are homed at functional units and loaned to projects
G. Team members’ career is responsibility of project manager
H. Lack of Specialization is one drawback of matrix organization
III Identify 3 correct statements regarding Stakeholder management [3 marks]
A. Stakeholders identification is an ongoing process
B. Ignore conflicting interests
C. Overlook issues
D. Effective communication is important
E. Engagement of stakeholders with project activities & decisions is important
F. The negotiator exerts status or position power to gain substantive outcomes for herself
G. Repress stakeholders who are negative about the project
A. Team members should be isolated from rest of stakeholders
Q III Short answer questions
Avoid copy paste from Web. Form your own answer in crisp.
Pl highlight key words.
# Question Marks
1 Explain how matrix organization overcomes the disadvantages of functional and projectized organization (in not 10
more than a page)
2 Explain the importance of non-functional requirements with few examples 5
3 State two basic functions of PMO and explain how that helps organization 5
4 State the definition & purpose of Project life cycle? Give couple of examples of Project life cycle 5
5 Explain with examples, the 4 strategies of Stakeholder management in the ‘power-interest’ tool 5
Q IV [20 marks]
Company ABC is exploring two project options to choose one from. The business analyst has given below forecast of investment &
revenue for these options.
a) Find out NPV for both projects @ 8% discount rate. Which project you would choose based on this?
b) Find out IRR. Which project you would choose based on IRR?
c) Find out Payback periods. Which project you would choose based on Payback period?
Note: Use the discount table given below. IRR shall be one of the discount rates given in the table and that accuracy is sufficient
Currency is given in US$
Project-A Project-B
Year Investment Revenue Investment Revenue
0 300,000 100,000
1 200,000 200,000
2 100,000 150,000 300,000 150,000
3 200,000 200,000
4 250,000 250,000
5 300,000 300,000
1
Discount factor table
(1+𝑅)𝑁
Year 6% 8% 10% 12% 14% 16% 18% 20%
0 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
1 0.94 0.93 0.91 0.89 0.88 0.86 0.85 0.83
2 0.89 0.86 0.83 0.80 0.77 0.74 0.72 0.69
3 0.84 0.79 0.75 0.71 0.67 0.64 0.61 0.58
4 0.79 0.74 0.68 0.64 0.59 0.55 0.52 0.48
5 0.75 0.68 0.62 0.57 0.52 0.48 0.44 0.40
QV [10 marks]
Company ABC has a project proposal which requires $ 250,000 to be invest initially and the project returns are $25,000 in year 1, $
50,000 in year 2, $ 75,000 in year 3 & 4. Find the IRR of this investment.
Note: Use the discount table given below. IRR shall be one of the discount rates given in the table and that accuracy is sufficient
Discount Factor 1 / (1+R)N
Year -6% -4% -2% 0% 2% 4% 6%
0 1.00 1.00 1.00 1.00 1.00 1.00 1.00
1 1.06 1.04 1.02 1.00 0.98 0.96 0.94
2 1.13 1.09 1.04 1.00 0.96 0.92 0.89
3 1.20 1.13 1.06 1.00 0.94 0.89 0.84
4 1.28 1.18 1.08 1.00 0.92 0.85 0.79
5 1.36 1.23 1.11 1.00 0.91 0.82 0.75