PM 0012 PROJECT FINANCE AND BUDGETING

Dear students to get solved assignments of SMU MBA SUMMER 2015 call us at 8510092683 or mail us at mhanda74@gmail.com1 Write short notes on:

Key project resources

Answer: The key project resources are money, materials, machines, and manpower. Let us discuss these key resources in detail: Three main requirements of funding a project through project finance

Answer: The three main requirements of funding a project through project finance are:

Technical feasibility: Project sponsors need to assure the lenders that the technological processes that will be used in the project are feasible for the commercial application of project.

Medium term financing for projects

Answer: Medium-Term financing

Bottom up estimation for creating project budget

Answer: The bottom-up approach is also known as definitive estimate or micro estimates. It is an approach used for estimating the cost, time, and risk involved in a project, which help in preparing a more realistic budget.

Dear students to get solved assignments of SMU MBA SUMMER 2015 call us at 8510092683 or mail us at mhanda74@gmail.com2 What is off take contract? Explain the various types of off take contracts.

Answer: Off take contractIn an off take contract, there is an agreement between the project company and the buyer. It is negotiated much before the construction of the facility in order to make the market secure for the future output of the facility.

3 Explain the different key project documents.

Answer: Key Project Documents

According to John Rakos "The success of any project is crucially dependent on the documents produced for it."

Dear students to get solved assignments of SMU MBA SUMMER 2015 call us at 8510092683 or mail us at mhanda74@gmail.com4 Write short notes on:

Project parties in a construction project

Answer: Project parties refer to individuals or entities that are directly or indirectly involved in a project.

Types of working capital

Answer: Let us discuss the types of working capital in detail.

Project cash flows

Answer: An organisation needs to use cash for purchasing different resources, such as labour, material, and equipment, for the successful completion of a project.

Payback period method used to evaluate an investment on a project

Answer: Payback period is a traditional method of evaluating investment in a project. The payback period is the duration of time taken to recover the initial cost of a project.

5 What are the problems associated with BOOT projects.

Answer: Although BOOT model is beneficial for certain projects, there are many risks and problems associated with it and may act as a constraint in the implementation of these projects. The main problems associated with BOOT projects are as follows:6 Explain the different types of management contracts (a type of PPP).

Answer: Management contracts: It is a type of PPP in which the public sector enters into an agreement with the private sector for managing a whole or a part of a public enterprise. In such a contract, the ownership is retained by the public sector.

Dear students to get solved assignments of SMU MBA SUMMER 2015 call us at 8510092683 or mail us at mhanda74@gmail.com