Answeres needed with explanations please


. A company has to make a choice between two projects, because the available resources in money and kind are not sufficient to run both at the same time. Each project would take 9 months and would cost $250,000.
  1. The first project is a process optimization which would result in a cost reduction of $120,000 per year. This benefit would be achieved immediately after the end of the project.
  2. The second project would be the development of a new product which could produce the following net profits after the end of the project:

1. year:       $ 15,000
2. year: $ 125,000
3. year: $ 220,000

Assumed is a discount rate of 5% per year. Looking at the present values of the benefits of these projects in the first 3 years, what is true?

  Both projects are equally attractive.
  The first project is more attractive by app. 7%.
  The second project is more attractive by app. 5%.
  The first project is more attractive by app. 3%.



  Which of the following statement(s) on whistleblowing is/are not true?
  1. It is a term used to define an employee’s decision to disclose information on unethical, immoral or illegal actions at work to an authority figure.
  2. An employee should always discuss the matter with people external to the company before following the "chain of command" and discuss it with the immediate superior.
  3. The consequences of whistleblowing are often extreme and might include being branded as an owner of bad judgment, layoff, civil action and imprisonment.
  4. Carefully performed whistleblowing can lead to the end of unethical business practices.
  b, c
  c, d


Liquidated damages (LDs) are contractually agreed payments in order to...
  ...give the contractor an incentive to meet an aggressive schedule or challenging quality objectives.
  ...penalize the contractor for late completion of a project or failure to meet specifications.
  ...cover the customer's costs caused by late completion or failure to meet specifications by the contractor.
  ...make a bid or proposal binding for the offerer while the customer has time to select among various bidders.



What is the meaning of a concept called the "Journey to Abilene"?
  Project managers should visit their customers far more often than what is usual in order to avoid misunderstandings and bad emotions.
  International projects may have an increased need for traveling which can lead to additional costs and troubles with time zones.
  Committee decisions can have the paradox outcome, that a jointly made or approved decision is not desired by any individual group member.
  A project is a temporary endeavor undertaken to create a unique product, service or result. Repeating it would be similar to making the same journey twice.




cnppmp's picture

PV= FV(1+interest)^n

First project:

1st Year=120000/(1+0.05)^1=114285

2nd Year=120000/(1+0.05)^2=108843.54

3rd Year=120000/(1+0.05)^3=103660.07



Second project

1st Year =15000/(1+0.05)^1=14285.71


2nd Year=125000/(1+0.05)^2=113378.68

3rd Year=220000/(1+.05)^3=190043.45




326788.61 – 317707.84 / 317707.84 = 0.0286

%= 2.86 %


Answer is D


CN Patil


cnppmp's picture

2) B

3) B

4) C



CN Patil