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UNIT - II

Fill in the blanks 1. Project formulation is the systematic development of a project idea for the eventual objective of arriving at an investment decision. 2. The inter-relationship between various constitutent activities of a project is generally shown in the form of a network diagram. 3. The details gathered from feasibility studies and presented in various table reports and statements are consolidated into one master report is called project report. 4. Project design and network analysis are important tools for the effective implementation of a project. 5. WASP stands for Workshop Analysis Scheduling Programme 6. Critical path is the sequence of activities in the network that takes the longest time to complete. 7. Payback period is the length of time required to recover the initial cash outlay on the project. 8. Average Rate of Return is also known as Return On Investment Method

Choose the correct answers 1. is primarily concerned with the identification of the project demand potential and the selection of the optimal technology suitable for achieving the project objectives. a. Techno-Economic analysis b. Network analysis c. Input analysis d. Feasibility analysis 2. project inputs. a. b. c. d. is concerned with the identification, quantification and evaluation of

Techno-Economic analysis Network analysis Input analysis Feasibility analysis

3. Under this analysis, estimates of social costs and social benefits are made and presented for computation of social profitability of the product. a. Cost Benefit analysis b. Financial analysis

c. Network analysis d. Input analysis 4. PERT Stands for, a. Programme Evaluation and Review Technique b. Product Evaluation and Review Technique c. Programme Evaluation and Research Technique 5. Internal Rate of Return Is Also Known As, a. b. c. d. Discounted Cash Flow Method Yield Method Time Adjusted Rate Of Return All the above

Match the following 1. 2. 3. 4. 5. 6. CPM PERT GERT Return On Investment Method Yield Method Project appraisal Average Rate of Return Logical mathematical model Internal Rate of Return Superior to CPM and PERT Assessment of project Scheduling technique (4) (1) (5) (3) (6) (2)

Answers in one or two sentences 1. Define Project It can be defined as a scientifically evolved work plan to achieve a specific objective within a specified period of time. 2. What are the Objectives of project? Specific, not general Not overly complex Measurable, tangible and verifiable Realistic and attainable Established within the resource bounds Consistent with resource available or anticipated Consistent with organizational plans, policies and procedure

3. Define NPV NPV may be defined as the excess of present value of project cash inflows over that of outflows. 4. Name the types of factory layout Product layout Process layout Combined layout

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