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2. The top-level decision makers are typically concerned not just with cost and time but with payback periods and return on investment. Project managers

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2. The top-level decision makers are typically concerned not just with cost and time but with payback periods and return on investment. Project managers should also focus on the benefits and financial returns of a project. (a) The table below provides a probability distribution for the returns on stocks A and B. Find the Expected Rate of Return on both stocks and conclude your answer. Table: Probability Distribution of Return for Stocks A and B. State 1 Probability 20% Return on Stock A 7% Return on Stock B 50% 2 40% 15% 40% 3 30% 15% 10% 4 20% 20% -15% (b) Distinguish between Fund Flow Statement and Cash Flow Statement. ( 10 ) ( 10 ) (Total / Jumlah: 20)

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