Attempt all the questions.
Section-A
Question1) Describe the NPV, Pay Back Period, IRR and discounted payback period with example.
Question2) Outline the characteristics of venture capital investment that differentiate them from investing in the equity of an established firm listed on a stock exchange.
Question3) Explain briefly the things that project financers in Power project consider?
Question4) How do the four methods of raising finance – Public issue, rights issue, private placements and preferential allotment compare?
Section-B
Case Study
The normal and crash times and direct costs for the activities of a project are shown below:
Activity Time Cost
Normal Crash Normal Crash
(1-2) 5 2 6,000 9,000
(2-4) 6 3 7,000 10,000
(1-3) 4 2 1,000 2,000
(3-4) 7 4 4,000 8,000
(4-7) 9 5 6,000 9,200
(3-5) 12 3 16,000 19,600
(4-6) 10 6 15,000 18,000
(6-7) 7 4 4,000 4,900
(7-9) 6 4 3,000 4,200
(5-9) 12 7 4,000 8,500
Case Questions:
Question5)a) Draw the network diagram.
b) Find out all normal and critical path.
c) Calculate the minimum cost project schedule if the indirect cost are Rs. 1,000 per