Project Management
Question 1 The government of Ghana has secured a 1-million-dollar funding from the government of France. The government of Ghana intends to construct a full-ledged wood market at Sokoban to relocate and resettle wood merchants located at Anloga wood market. This is to pave way for a construction of a bypass that intends to reduce traffic congestion within the Kumasi Metropolis. The bypass will connect an interchange at Asokwa and the main Kumasi - Accra road. Develop a detailed project charter for this project: Construction of Wood Market, Sokoban Wood Village (30 marks (Some good information can be obtained online) Question 2 A. Paakot Ltd, a lumber processing firm, intends to diversify their investment portfolio. In view of this, management has decided to put up a hostel accommodation facility for university students. The initial capital outlay required for the project over a two-year period will be a total of $500,000. Paakot Ltd intends to invest S350,000 immediately and the final S150,000 in one year's time. Starting from year 2, the project is expected to generate a stream of revenues of S100,000, S120,000, S80,000, $200,000 per year respectively, for the firm. The required rate of return is 15%, and the expected rate of inflation over the life of the project is projected to remain steady at 3%. A. As a project consultant, you have been contracted by the firm to appraise the viability of the project, Using: (1) The Simple Payback Method. 18 marks] (ii) The Net Present Value Method. (8 marks] (ii) In your opinion, would you advise the firm to go ahead with the project or not? [4 marks] B. Explain with examples the risks a company is likely to face if it fails to complete a project on time. 15 marks! C. Using an appropriate illustration, discuss the scoring model as a project screening model. 15 marks Question 1 The government of Ghana has secured a 1-million-dollar funding from the government of France. The government of Ghana intends to construct a full-ledged wood market at Sokoban to relocate and resettle wood merchants located at Anloga wood market. This is to pave way for a construction of a bypass that intends to reduce traffic congestion within the Kumasi Metropolis. The bypass will connect an interchange at Asokwa and the main Kumasi - Accra road. Develop a detailed project charter for this project: Construction of Wood Market, Sokoban Wood Village (30 marks (Some good information can be obtained online) Question 2 A. Paakot Ltd, a lumber processing firm, intends to diversify their investment portfolio. In view of this, management has decided to put up a hostel accommodation facility for university students. The initial capital outlay required for the project over a two-year period will be a total of $500,000. Paakot Ltd intends to invest S350,000 immediately and the final S150,000 in one year's time. Starting from year 2, the project is expected to generate a stream of revenues of S100,000, S120,000, S80,000, $200,000 per year respectively, for the firm. The required rate of return is 15%, and the expected rate of inflation over the life of the project is projected to remain steady at 3%. A. As a project consultant, you have been contracted by the firm to appraise the viability of the project, Using: (1) The Simple Payback Method. 18 marks] (ii) The Net Present Value Method. (8 marks] (ii) In your opinion, would you advise the firm to go ahead with the project or not? [4 marks] B. Explain with examples the risks a company is likely to face if it fails to complete a project on time. 15 marks! C. Using an appropriate illustration, discuss the scoring model as a project screening model. 15 marks
