NATIONAL OPEN UNIVERSITY OF NIGERIA

UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF MANAGEMENT SCIENCES
JULY 2018 EXAMINATION

COURSE CODE:      BFN409                                                          CREDIT UNIT: 3

COURSE TITLE:     PROJECT EVALUATION

TIME ALLOWED:   3 Hours

INSTRUCTIONS:     1. Attempt question Number one (1) and any other three (3).

2. Question number 1 is compulsory and carries 25 marks, while the other questions carry 15 marks each

1a. A project costs N100,000 and has a scrap value of N40,000. The stream of income before depreciation and taxes are N40,000, N50,000 and N60,000 for the first three years. The tax rate is 50% and depreciation is on straight line basis.

Calculate the accounting rate of return for the project. 15 Marks

b. Discuss the key segments of project evaluation.   10 Marks

2. List and discuss four factors that have influenced the location of industrial projects in your present environment. 15Marks

3a. Discuss five (5) bottom-up techniques to project identification. 10 Marks

b. What do you understand by demand?        5 Marks

4a. Discuss five main elements of project analysis. 10 Marks

b. Explain the meaning of projected income statement

5. Discuss the components of a balance sheet. 15 Marks

6. List and discuss the various stages involved in a project cycle. 15 Marks