Project Management Week 6 NPTEL Assignment Answers 2025
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✅ Subject: Project Management
📅 Week: 6
🎯 Session: NPTEL 2025 July-October
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NPTEL Project Management Week 6 Assignment Answers 2025
1. NPTEL Ltd is considering two possible projects but can only raise enough funds to proceed with one of them. Investment appraisal techniques have been used and the following results found:
Which of the following is the most logical interpretation of the results?
- Project W should be selected as it gives the longest payback period.
- Project W should be selected because it will yield the highest NPV.
- Project X should be selected because it will yield the lowest NPV
- The ARR is the most meaningful investment appraisal technique and hence Project W should be selected.
Answer : See Answers
2. NPTEL Ltd is considering undertaking a project, which will involve an initial outlay of £300,000. The project has the following cash flows associated with it:
If a discount rate of 10% is used to calculate the NPV of the project, which of the following statements is correct? (Assume the cash flows arise at the end of each year.)
- The project will yield a positive NPV of £65.5k and have a payback period of 2 years and 3 months.
- The project will yield a positive NPV of £65.5k and have a payback period of 2 years and 9 months.
- The project will yield a positive NPV of £365.5k and have a payback period of 2 years and 3 months.
- The project will yield a positive NPV of £365.5k and have a payback period of 2 years and 9 months.
Answer :
3. Tata Industry is considering a new project that develops a new iron pigment, PRISTINE. The company has estimated that the project’s NPV is Rs.3 million, but this does not consider that the new pigment will reduce the revenues received on its existing pigment products. Specifically, the company estimates that if it develops PRISTINE the company will lose Rs. 500,000 in after-tax cash flows during each of the next 10 years because of the cannibalization of its existing products. Tata Industry’s WACC is 10 percent. What is the net present value (NPV) of undertaking PRISTINE after considering externalities?
- Rs. 2,927,716.00
- Rs. 3,000,000.00
- Rs. (-72,283.55)
- Rs. 2,807,228.00
Answer :
4. NPTEL Ltd. is considering two mutually exclusive projects. Project A has an internal rate of return (IRR) of 12 percent, while Project B has an IRR of 14 percent. The two projects have the same risk, and when the cost of capital is 7 percent the projects have the same net present value (NPV). Assume each project has an initial cash outflow followed by a series of inflows. Given this information, which of the following statements is most correct?
- If the cost of capital is 13 percent, Project B’s NPV will be higher than Project A’s NPV.
- If the cost of capital is 9 percent, Project B’s NPV will be higher than Project A’s NPV.
- If the cost of capital is 9 percent, Project B’s modified internal rate of return (MIRR) will be less than its IRR.
- All of the statements above are correct.
Answer :
5. In a CPM network, the critical path is defined as:
- The path with the minimum slack
- The path with the maximum number of activities
- The path that allows maximum project duration flexibility
- The path with the earliest project completion time
Answer :
6. Which of the following statements about IRR is not correct?
- IRR assumes reinvestment of intermediate cash flows at the IRR rate itself.
- A project is acceptable if IRR > cost of capital.
- When comparing mutually exclusive projects, the project with higher IRR is always preferred.
- IRR is the discount rate that makes NPV equal to zero.
Answer : See Answers
7. In a PERT network, the probability of completing a project within the scheduled time depends on:
- Total project cost
- Variance of the critical path activities
- Number of dummy activities
- Total number of activities in the project
Answer :
8. The critical path in a network is the path with the maximum slack.
- True
- False
Answer :
9. Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows.
- True
- False
Answer :
10. In PERT/CPM, dummy activities consume no time and no resources.
- True
- False
Answer : See Answers
NPTEL Project Management Week 6 Assignment Answers 2024
1. “A technique in which start and finish dates are adjusted based on resource limitation to balance the demand for resources with the available supply.“ is called ___________
- Resource loading
- Resource levelling
- Resource allocation
- Resource availability
Answer: Resource levelling
Explanation:
Resource leveling adjusts start and finish dates based on resource constraints to avoid over-allocation. The goal is to balance resource demand with availability without changing the project scope.
2. In __________, shortening the project time is the objective; in ___________, smoothening of the resource usage rate without changing the project duration is the objective.
- Resource loading, resource levelling
- Resource levelling, Crashing
- Crashing, Resource levelling
- Crashing, Resource allocation
Answer: Crashing, Resource levelling
Explanation:
Crashing focuses on reducing project duration by adding extra resources or cost. Resource leveling aims at evenly distributing resources without affecting the timeline.
3. Most heuristic solution methods start with the ____________ and analyze resource usage period by period, resource by resource.
- GERT schedule
- Gantt chart
- PERT/CPM schedule
- Master schedule
Answer: PERT/CPM schedule
Explanation:
Heuristic approaches usually begin with the PERT/CPM schedule to prioritize tasks and allocate resources efficiently by analyzing period-wise and resource-wise usage.
4. The project control process should be viewed as a(n) ____________, with revised plans and schedules (if warranted) following corrective actions. The project control process should run continuously until the project is completed.
- closed loop system
- open loop system
- open environment
- earned value plan
Answer: closed loop system
Explanation:
A closed loop system includes feedback for monitoring and corrective actions. This ensures continuous improvement and control until the project ends.
5. The best sources of items to be monitored are the project risk management plan, change of scope orders, and _____________.
- schedule
- WBS
- quality report
- resource report
Answer: WBS
Explanation:
The Work Breakdown Structure (WBS) provides a detailed view of project deliverables, making it a key source for monitoring scope, risks, and progress.
6. Which of the following conventions has the characteristic of the project always seeming to be running late until the very end when it seems to catch up suddenly?
- The 50-50 rule
- The 0-100 percent rule
- Critical input use rule
- The proportionality rule
Answer: The 0-100 percent rule
Explanation:
In the 0-100 rule, no credit is given until a task is fully complete. This causes the project to appear delayed until tasks are completed near the end, causing sudden progress jumps.
7. In earned value analysis, if the cost variance is (-$10,000), _________.
- the cost variance is favourable
- the cost variance is unfavourable
- the scheduled variance is favourable
- the scheduled cost avoidance is unfavourable
Answer: the cost variance is unfavourable
Explanation:
A negative cost variance indicates the actual cost has exceeded the earned value, meaning the project is over budget — an unfavourable condition.
8. EV – PV = _______.
- SV
- CV
- CPI
- TV
Answer: SV
Explanation:
Schedule Variance (SV) is calculated by subtracting Planned Value (PV) from Earned Value (EV). It tells how much ahead or behind schedule the project is.
9. If EV = $500, AC = $450, PV = $475; SPI = _____________.
- 1.05
- 1.11
- 95
- .90
Answer: 1.05
Explanation:
SPI = EV / PV = 500 / 475 = 1.05. A value greater than 1 means the project is ahead of schedule.
10. ______________ is/are additional Agile tools that facilitate monitoring and controlling overall project progress.
- Sprint
- product backlog and sprint backlog
- Burnup and burndown charts
- Task boards
Answer: Burnup and burndown charts
Explanation:
Burnup and burndown charts visually track progress over time in Agile projects. They help teams monitor scope and performance throughout the sprint.
