QUESTION ONE

(a) Critically examine the financial management functions for a project manager in a task force execution like force account project. (5 Marks)

(b) Given the functions discussed above in part (a), briefly examine the objectives of any project/firm as covered in this module. (5 Marks)

(c) Given the objectives of the firm or project as in(b) above, assess the financial goal of the firm, and support your arguments. (10 Marks)

QUESTION TWO

In the past, the role of a project manager was to deliver a project goal on time and on budget. Today, the roles of a project manager is more fluid and encompasses a broad range of skills and sub-roles which have subsequently meant that project managers are now required to be far more financially savvy.

Required: Using any project management in Tanzania, examine the need for financial management in projects execution, in doing this, discuss the ways a project manager can manage the finances of a given project. (20 Marks)

QUESTION THREE

IAA limited is considering factoring its accounts receivables. It sells on credit only and its collection period is not more than 60 days in a year of 365 days. The firm has been experiencing severe cash flow problems lately and is advised to consider factoring its debtors. An institution is prepared to offer the following factoring terms: 75% on each invoice will be paid immediately and interest will be charged at 1% above the current prime. rate of 18.5%. Service fees will be charged at 1.5% of total sales. Suppliers offer the firm a discount at 2% for cash settlement. Sales subject to discount amount to 40% of its total sales. If the firm were to factor, it is believed that it will save the firm approximately TZS 35,000,000/= in expenses. Its total sales per annum are TZS 4,000,000,000/=

. Required:

a) Calculate the effective cost of factoring,

b) Is this form of financing effective to IAA Limited? Explain. (15 Marks) (5 Marks)

QUESTION ONE (a) Critically examine the financial management functions for a project manager in a task force execution like force account project. (5 Marks) (b) Given the functions discussed above in part (a), briefly examine the objectives of any project/firm as covered in this module. (5 Marks) (c) Given the objectives of the firm or project as in (b) above, assess the financial goal of the firm, and support your arguments. (10 Marks) QUESTION TWO In the past, the role of a project manager was to deliver a project goal on time and on budget. Today, the roles of a project manager is more fluid and encompasses a broad range of skills and sub-roles which have subsequently meant that project managers are now required to be far more financially savyy. Required: Using any project management in Tanzania, examine the need for financial management in projects execution, in doing this, discuss the ways a project manager can manage the finances of a given project. (20 Marks) QUESTION THREE IAA limited is considering factoring its accounts receivables. It sells on credit only and its collection period is not more than 60 days in a year of 365 days. The firm has been experiencing severe cash flow problems lately and is advised to consider factoring its debtors. An institution is prepared to offer the following factoring terms: 75% on each invoice will be paid immediately and interest will be charged at 1% above the current prime. rate of 18.5%. Service fees will be charged at 1.5% of total sales. Suppliers offer the firm a discount at 2% for cash settlement. Sales subject to discount amount to 40% of its total sales. If the firm were to factor, it is believed that it will save the firm approximately TZS 35,000,000/= in expenses. Its total sales per annum are TZS 4,000,000,000/=. Required: a) Calculate the effective cost of factoring, (15 Marks) b) Is this form of financing effective to IAA Limited? Explain