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CIS-386 Project ManagementSpring Semester 2024 (20232)
Assignment No. 1: From Chapter 04
Individual assignment
Date Announced: Monday, April 22, 2024
Submission Deadline: Monday, April 29, 2024
THIS WILL BE PART OF MIDTERM EXAM/ FINAL EXAM
SUBMITTED BY:
Name: __________________________
Enrollment No. ____________________
Email: ____________________, Phone: ____________________
Teacher’s Name: Dr. Abid Ali Minhas
Question Assigned Obtained CLO Learning Domains
No.
Marks
Marks
All.
26
2.1 Skills: Create a work breakdown structure with
the related organizational and cost control
structures that accurately forecast project costs,
quality and timelines.
Total
Marks
26
College of Engineering and Architecture
Al Yamamah University
Riyadh, KSA
i
General Instructions
1.
2.
3.
4.
5.
6.
This is individualized assignment
Avoid Plagiarism. In case plagiarism is found, you will get grade
F in this assignment.
Take care of the deadline
Please upload only one final copy of the assignment on LMS. If
you upload more than one copy I will chose one copy randomly.
There might be a quiz from this assignment. This assignment or
similar to this may be part of Midterm and/or final exam
Rename your file name by using the naming convention “Your
University ID-FirstName-CIS386-Ast1.xls”  “201811111Abdullah- CIS386-Ast1.xls”. Without it, 10% of the obtained
marks will be deducted.
ii
What is required in this assignment?
Question Question’s statement
No.
1.
Net present value (NPV) analysis is a method of calculating the
expected net monetary gain or loss from a project by discounting
all expected future cash inflows and outflows to the present point
in time.
Projects with a positive NPV should be considered if financial
value is a key criterion. We Choose the project with higher NPV.
Marks
4
Using built-in formula of NPV in MS excel calculate the NPV for the
following two projects in excel sheet1. Rename the Excel file as
per instructions on page 02 of this assignment.
Discount
Rate
10%
PROJECT 1 YEAR 1
YEAR 2
YEAR 3
YEAR 4
YEAR 5
TOTAL
Benefits
$0
$2,000
$3,000
$4,000
$5,000
$14,000
Costs
$5,000
$1,000
$1,000
$1,000
$1,000
$9,000
Cash flow
?
?
?
?
?
?
NPV
?
?
?
?
?
?
Discount
Rate
10%
PROJECT 2 YEAR 1
YEAR 2
YEAR 3
YEAR 4
YEAR 5
TOTAL
Benefits
$1,000
$2,000
$4,000
$4,000
$4,000
$15,000
Costs
$2,000
$2,000
$2,000
$2,000
$2,000
$10,000
Cash flow
?
?
?
?
?
?
NPV
?
?
?
?
?
?
In order to get full marks your answers must match with the answers given in the slides
iii
Question Question’s statement
No.
2.
In sheet 2 of the excel file of Q No. 1, put the following formula
and for 8% discount rate, calculate ‘Discount Factor’ for Year 0,
Year 1, Year 2 and Year 3
Discount factor = 1/(1+Dicount Rate)Year No
• Year 0 : discount factor = ?
• Year 1 : discount factor = ?
• Year 2 : discount factor = ?
• Year 3 : discount factor = ?
Marks
2
iv
3.
In sheet 3 of the excel file of Q No. 1, using the following formula,
calculate the NPV for JWD for the following data.
4+2
Also calculate Return on Investment (ROI).
Discount rate
Costs
Discount factor
Discounted costs
8%
0
140,000
?
?
Benefits
Discount factor
Discounted benefits
?
?
200,000.00
?
?
200,000.00
?
?
200,000.00
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
YEAR
Discounted benefits Discounted costs
Cumulative(Discounted
benefits – Discounted
costs)
Return on Investment
(ROI)
Cumulative discounted
Cost
Cumulative discounted
benefit
4.
0.00
1
40,000
?
?
2
40,000
?
?
3
40,000
?
?
Total
?
?
For the data of Question 3, draw the graphs of ‘Payback Analysis’.
Label x-axis and y-axis, and type the title of the graph.
4
v
5.
‘Sample Weighted Scoring Model’ is also used for the Project
Selection.
i. Write down the formula for calculation [1 marks]
ii. In sheet 4 of the excel file of Q No. 1, calculate ‘Weighted
Project Scores’ for the following four projects. You can use
the Excel formula ‘=SUMPRODUCT(B2:B8,C2:C8)’ . [4
marks]
iii. Draw the bar chart graph of Weighted Project Scores, label
x-axis and y-axis, and type the title of the graph. [4 marks]
iv. Which project will you choose out of the four? [1 marks]
Criteria
Supports key business
objectives
Has strong internal sponsor
Has strong customer support
Uses realistic level of
technology
Can be implemented in one
year or less
Provides positive NPV
Has low risk in meeting scope,
time, and cost goals
Weighted Project Scores
Weight Project 1
10
Project 2
Project 3
Project 4
25%
15%
15%
90
70
50
90
90
90
50
50
50
20
20
20
10%
25
90
50
70
5%
20%
20
50
20
70
50
50
90
50
10%
?
20
50
50
90
?
?
?
?
In order to get full marks your answers must match with the answers given in the slides.
vi