1.1 Explain FOUR (4) important business considerations when choosing the means of finance for a project.(8 marks)

1.2 Capital investments may be classified in various ways. Explain any 5 ways in which capital investments may be classified according to planning and control. (10)

1.3 An organisation can view project portfolio management as having five levels, from the simple to the most complex. Explain these five levels. (10)

1.4 If a project is twice as large as the previous one, it will usually not cost twice as much. Discuss 5 possible reasons for this. (10)

1.5 Discuss the following key business considerations in choosing the means of finance for a project:

1.6 Risk (6)

1.7 Flexibility (4)

1.8 Explain the meaning of the following types of capital investments:

• Mandatory investment
• Diversification investment
• Research and development investment

1.9 Discuss share capital as a means of finance for a project.

1.10 Briefly describe 3 reasons for project portfolio management.

1.11 Explain three reasons why capital investment decisions are often regarded as the most important decisions taken by an enterprise.