INF3708/201/3/2013
SOFTWARE PROJECT MANAGEMENT TUTORIAL LETTER 201 FOR
INF3708
SOLUTIONS
Solutions (Highlighted) - Assignment 01 – Semester 1
ASSIGNMENT 01 - COMPULSORY
Study material Total marks Hughes & Cotterell: Chapters 1 – 4 25 marks = 100%
UNIQUE NUMBER: 203647
1. A 1. 2. 3. 4. 5.
is said to be “A specific plan or design” or “A planned undertaking” System Scope Project Software Management
-2-
INF3708/201
2. Software Project Management scope normally comprises the following: a. Project Feasibility b. Project Initiation c. Project Planning d. Project Execution e. Project Control f. Project Termination Which of the above combination is correct for Project Management scope? 1. a, b, e, and f only. 2. a, c,
…show more content…
R 150 000 5. R 220000 Calculate the “net profit” of project 3. 1. R 50 000 2. R 120 000 3. R 300 000 4. R 470000 5. R 170 000
11.
12. Based on your answers to questions 9 - 11 above, which project would you select to develop, and why? 1. Project 2 - as it has the lowest investment, followed by project 1, and then project 3. 2. Project 3 - as it has the highest net profit, followed by project 2, and then project 1. 3. Project 1 - as it has the list risk, followed by project 2, and then project 3. 4. Project 1 - as it has the lowest investment, followed by project 2, and then project 3. 5. All of the above in any order, as they all make profits.
-5-
13. Calculate the “payback period” for project 1. 1. 4.0 years 2. 4.6 years 3. 5.8 years 4. 5.0 years 5. 4.8 years 14. Calculate the “payback period” for project 2. 1. 5.0 years 2. 5.2 years 3. 5.6 years 4. 6.2 years 5. None of the above 15. Calculate the “payback period” for project 3. 1. 4.6 years 2. 4.8 years 3. 5.2 years 4. 5.8 years 5. 5.6 years 16. Using the “shortest payback” method, which project would you now select for development? 1. Project 1 2. Project 2 3. Project 3 4. Neither project 1 nor project 3 5. Neither project 3 nor project 2. 17. Calculate the “Return On Investment” (ROI) of each of the three projects (project 1, project 2 and project 3 respectively) given in the table. 1. 5.71%, 9.44% and 7.78%; for project 1, project 2 and project 3 respectively. 2. 7.78%, 5.71% and 9.44%; for project 1,
Free cash flows of the project for next five years can be calculated by adding depreciation values and subtracting changes in working capital from net income. In 2010, there will be a cash outflow of $2.2 million as capital expenditure. In 2011, there will be an additional one time cash outflow of $300,000 as an advertising expense. Using net free cash flow values for next five years and discount rate for discounting, NPV for the project comes out to be $2907, 100. The rate of return at which net present value becomes zero i.e.
Estimate the project’s operating cash flows for each year of the project’s economic life. (Hint: Use Table 2 as a guide)
The first project proposal is Match My Doll Clothing line expansion consisted of expanding matching doll and child’s clothing and accessories. The second project proposal is Design Your Own Doll by creating customizable “one of a kind” doll features through the company’s website. The project selection criteria would base on quantitative and qualitative analysis. The quantitative analysis would base on the evaluation of discounting cash flow forecasts to determining the Net Present Value (NPV), Internal Rate of Return (IRR), and the Payback period of each proposed project. The qualitative analysis would include the potential project value of the company’s overall strategy, innovation, key project risks, and the project interdependencies to the whole company.
Project scope defines the goals of the project and the budget of both time and money that has been allocated to achieve the objectives. For the best results to be achieved, both the definition and the allocated budget must be precise and detailed. A good process scope document will define specifically the tasks to be completed or the delivered results. The project scope is important because it will define the specific date for which the deliverables
The project scope statement is a key element in any new project. It is used to outline the results that the project will produce and the terms and conditions under which the work will be performed. Upper management, the requestor of the project and the project team need to all agree on the
General Foods is a large corporation organized by product lines. They are evaluating Super Project, the manufacture of a new powdered dessert. Crosby Sanberg, a financial analysis manager, must determine the value in accepting the proposal, along with J.C. Kresslin, the Corporate Controller. The Super Project will increase profit with a payback period of less than ten years. The proposed capital investment for the project is $200,000 ($80,000 for building modifications and $120,000 for machinery and equipment) and production would take place
All projects are defined by the purpose, objectives and deliverables. Properly defining these, as well as the other aspects of the project management plan will
"a. If each project's cost of capital is 12%, which project should be selected? If the cost of capital is 18%, what
4. What kind of debt (agency debt, bank debt, or Rule 144a bonds) should the sponsors of the project use to fund the deal? What are the advantages and disadvantages of each kind of debt? In your view will project bonds receive an investment grade rating? What is the“weakest link” of the project? How can they improve the likelihood of getting an investment grade?
Defining the project scope sets the stage for developing a plan and its primary purpose is to define as clearly as possible the deliverables and to focus project plans (Gray & Larson, 2006). The team has
Without the ability to rank the projects based off of cash flows solely, we had to use some analytical criteria as a capital budgeting analyst to provide some thorough support and reasoning for how we ranked the four best projects. In this case we are only using quantitative considerations that we deem to be relevant and no other project characteristics are deciding factors in our selection of the best four projects. When coming up with our calculations to rank
Project Scope – identifies goals, deliverables, tasks, costs, and deadlines. Project scope is part of project planning.
5. The project is assumed to end in year 4. Do you think that this is realistic? Can you estimate the value of the project’s operating cash flows beyond year 4? State any assumptions you made.
Prior to the onset of modern project management, the success criteria of a project lay solely on the technical success, or scope of the resulting product or service. Today, adherence to budget and schedule form a triangle of success factors alongside scope, with client satisfaction also developing as a key determinant of project success (Kerzner, 2004). However, the delivery of project scope will always take precedence over all other project factors, because if a project fails to deliver on its original intention, need or functionality, the project will always be considered as a failure. This essay will analyse the adequacy of the Guide to the Project Management Body of Knowledge’s (PMBOK) definition of Project Scope Management in relation
The following paper analyzes a project from financial perspectives using the capital budgeting techniques like Net Present Value (NPV) and Internal Rate of Return (IRR).