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13pmcba\13pmcba-as3.doc 8 March 2013 Assignment no. 3 Project Management TIX Assignment no. 3 covers chapters 9-13 in Meredith & Mantel and...

Why is no one responding to My project management work when the money has already been charged from my Card.. Please I need answers

13pmcba\13pmcba-as3.doc 8 March 2013 Assignment no. 3 Project Management TIX Assignment no. 3 covers chapters 9-13 in Meredith & Mantel and chapters 1-4 in Perkins. The as- signment must be submitted at latest in class on Friday 13 March 2013 . The deadlines are strictly enforced and no assignments will be accepted after the stipulated time. To be eligible to take the fi- nal exam, at least three out of four assignments must be submitted and OK’ed before the final exam. Relatively short, concise answers are appreciated. Please write clearly! Question a3.1 a) What is the main purpose of project controlling? b) What is the main purpose of project auditing? c) What is the main difference between project controlling and project auditing? Question a3.2 Read the article by Busby, J. S. (1999): “An assessment of postproject reviews”, Project Manage- ment Institute, vol. 30, no. 3 as reprinted in Meredith & Mantel pp. 616-623. Based on the article, answer the following questions: a) Why do organisations often ignore post-project evaluations? b) Assess / discuss the author’s advice for conducting post-project evaluations. c) How does an understanding of how people learn affect project audits and evaluations? d) Summarise the author’s recommendations. Question a3.3 a) Explain the main differences between (private) financial analysis and (social) cost benefit ana- lysis. b) Why do government units usually also need to undertake a financial analysis (even if a social cost benefit analysis shows that the project is beneficial)? c) Consider a project for which a financial analysis shows a net loss, but a (social) cost benefit ana- lysis shows is a positive net benefit. Should such a project be undertaken? If yes, how could the financial loss be financed?
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Question a3.4 Consider a project to arrange a free air concert in Texas. There is space for 8,000 persons at the chosen site. It is assessed that it is possible to sell all 8,000 tickets at 200 dollars each. The total cost of renting the concert site, of setting up and taking down all equipment, of hiring the bands and of cleaning afterwards is 1,400,000 Dollars. The total cost of ticketing and ticket control is 450,000 dollars. a) Undertake a financial analysis of the project to determine whether it is beneficial for a private firm to carry out the project. b) Undertake a (social) cost benefit analysis to determine whether it is beneficial from society’s viewpoint to carry out the project. [Hint 1: the answer will depend on whether it is assumed that the project is financed through tickets sale or via the government budget. Consider both options. Hint 2: As 8,000 tickets can be sold at 200 dollars each, then the marginal value of each ticket to the purchases is at least 200 dollars.] Question a3.5 A private firm is considering entering the Estonian market for salmon. In specific, the firm con- siders whether to set up an aquaculture (fish farm) project in USA producing 4 kg of salmon. (The numbers are unrealistic but easy to work with). The project would entail renting a fish basin, pur- chasing of fry (small baby fish), feeding the fry and selling the grown up fish to the domestic mar- ket. The firm decides to undertake a financial analysis in order to examine the private profitability of the fish farm project. All transactions are assumed to take place within the same period. The project is based on producing 4 kg of salmon each costing 4 €. The cost of renting the fish basin is 3 €. The fry costs 2 €. To produce 1 kg of salmon, one would need 1.5 kg of feed cost- ing 0.1 € per kg. The needed labour can be hired for 2 €. a) Undertake a financial analysis and find the net (private) benefit of the project assuming that all prices are unaffected by the project. b) It now transpires that the price of feed is due to change as a result of the extra demand from the project. In particular, the pre-existing demand (from other market participants) and the supply are shown in the figure below. What is the price of feed after the extra demand resulting from the fish farm project? What is the cost of feed? What is the net benefit of the project when the changed feed price is taken into account? Should the project be undertaken in this case?
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