Net Present Value and Software Project Management Essay

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INF3708/201/3/2013

SOFTWARE PROJECT MANAGEMENT TUTORIAL LETTER 201 FOR
INF3708
SOLUTIONS

Solutions (Highlighted) - Assignment 01 – Semester 1
ASSIGNMENT 01 - COMPULSORY
Study material Total marks Hughes & Cotterell: Chapters 1 – 4 25 marks = 100%

UNIQUE NUMBER: 203647

1. A 1. 2. 3. 4. 5.

is said to be “A specific plan or design” or “A planned undertaking” System Scope Project Software Management

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INF3708/201

2. Software Project Management scope normally comprises the following: a. Project Feasibility b. Project Initiation c. Project Planning d. Project Execution e. Project Control f. Project Termination Which of the above combination is correct for Project Management scope? 1. a, b, e, and f only. 2. a, c, …show more content…
4. 5.71%, 7.78% and 9.44%; for project 1, project 2 and project 3 respectively. 5. None of the above. 18. Calculate the “Net Present Value” (NPV) of each of the three projects given in the table, at a discount rate of 10%. 1. R 10 000, R 11 667 and R 28 333; for project 1, project 2 and project 3 respectively. 2. - R 13 850.50, - R 9 483.50 and + R 13 838; for project 1, project 2 and project 3 respectively. 3. R 10 000, R -11 667 and R 28 333; for project 1, project 2 and project 3 respectively. 4. + R 60 000, + R 70 000 and + R 170 000; for project 1, project 2 and project 3 respectively. 5. None of the above.

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19. Based on your calculation of the individual NPV of each project in question 18 above, which project would you select to develop? 1. Project 1 2. Project 2 3. Project 3 4. Neither project 1 nor project 3 5. Neither project 3 nor project 2. 20. of 1. 2. 3. 4. 5. 21. is a project evaluation technique that takes into account both the profitability a project as well as the timing of the cash flow that are produced. PERT Activity network Net Present Value (NPV) Present value Return On Investment (ROI)

, also known as accounting rate of return, provides a way of comparing the net profitability to the investment required. 1. PERT 2. Return On Investment (ROI) 3. Payback period 4. Net Present Value (NPV) 5. CPM

22. Prototypes can be used to eliminate risk and facilitate communication by: a) Specific assumptions, dependencies
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