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Master of Business Administration - MBA Semester 3
PM0012-Project Finance and Budgeting
(Book ID: B1938)
Assignment (60 Marks)
Note: Answers for 10 marks questions should be approximately of 400 words. Each question is
followed by evaluation scheme. Each Question carries 10 marks 6 X 10=60.
Q1. Explain different requirement of resources in a project. Identify the resources that may be
required in a telecommunication project.
Answer. Resources are required to accomplish project objectives. Without them, one cannot
imagine to complete any project. They are the means or inputs to produce valuable output and
complete the scope set out to be achieved by the project. These resources can be people,
equipment, facilities, funds or anything else required for the completion of a project. According
to Project Management Institute,
Q2. Answer the following questions:
1. What is a Letter of Intent (LOI)? What is its purpose?
2. What are the basic features of EPC (Engineering, Procurement and Construction) contracts?
Give any 4 advantages of entering intoan EPC contract?
1. a. Define LOI
b. List any 4 purposes of LOI
2. a. briefly explain the 3 basic features of EPC contracts
b. List any 4 advantages of entering into EPC contracts
Answer. a. A Letter Of Intent (LOI) may be defined as an agreement between two or more parties
to do business together before signing the contract. It signifies an intention to do the business at
later date. It is the first step in negotiation of a commercial transaction to agree upon the business
terms of the transaction.

2. Q3. Explain the different key project documents.
Answer. Project management can create a lot of paperwork, and it’s not always the stuff you
want or need. Let’s talk about the essentials. Here are nine documents that no self-respecting
project should be without.
Q4. Write short notes on:
 Developments in financing of construction projects in India.
 Importance of cost of capital in project selection.
 Principles employed by organisations to manage working capital
Answer. Developments in financing of construction projects in India:
Indian construction is in a nascent stage as compared to other developed countries, such as US or
UK. India lacks in basic constructions, such as highways, airports and seaports. The Indian
government is striving to
Q5. What are the problems associated with BOOT projects.
Answer. Build, Own, Operate, Transfer (BOOT)
A BOOT funding model involves a single organisation, or consortium (BOOT provider) designing,
building, funding, owning and operating the scheme for a defined period of time and then
transferring this ownership across to an agreed party.
Customers enter into long term supply contracts with the BOOT operator and are charged
accordingly
Q6. What is project risk? List some risks associated with a construction project and a telecom
project. Discuss the similarities and the differences.
Answer. Risk can be defined as any uncertain event that leads to losses. It is the probability or
threat of damage, liability, loss or any other negative occurrence. A project risk is any event that
may act as a constraint in successful
Spring-2016
Get solved assignments at nominal price of Rs.125 each.
Mail us at: subjects4u@gmail.com or contact at

3. 09882243490