FINANCE

6.

The following table shows data for 5 projects of your company

Calculate the average production rate experienced on these projects?

Project	Crew hours/cubic meter	Cubic meter placed
1	0.375	1200
2	0.680	426
3	0.420	391
4	0.481	288
5	0.555	61

	a.	0.531 crew hours/m3
	b.	0.620 crew hours/m3
	c.	0.532 crew hours/m3
	d.	0.465 crew hours/m3
	e.	0.502 crew hours/m3

7.

An increase in WACC of a project already in construction denotes what?

	a.	Decrease in NPV
	b.	Increase of profitability of project
	c.	Denotes a decrease of valuation of the project
	d.	Decrease in project risk
	e.	None of the above

8.

When is the time value of money usually ignored?

	a.	When calculating the Internal Rate of Return (IRR)
	b.	Calculating the simple payback period
	c.	Calculation of Monetary value and Cash flows from one person to another
	d.	Performing Future Value calculations
	e.	Salvage value at the end of an investment term

9.

During review of Estimates, Paretos law can be a useful tool in that

	a.	By carefully selecting the items, the team can review 20% of the cost of the estimate by checking 80% of the items
	b.	The team can be certain that the estimate is 80% accurate
	c.	Any 20% of the items reviewed will represent 80% of the cost of the estimate
	d.	Approximately 80% of the overrun will occur in 20% of the items in the estimate.
	e.	All of the above

10.

You are preparing a Class 5 estimate, what will be the typical maturity level of the project definitions deliverables (expressed as % of complete definition)?

	a.	1%-5%
	b.	10-40%
	c.	2%-6%
	d.	0%-2%
	e.	2-3%

11.

You are preparing a Class 5 estimate, you have obtained an equipment quote of R80 000. The Lang Factor is 4.15 for this type of plant. What is the estimated project cost?

	a.	R207 900
	b.	R256 642
	c.	R201 910
	d.	R332 000
	e.	R198 000

12.

What is another term for capacity Factor Method?

	a.	Parametric Method
	b.	Scale of Operations Method
	c.	End-Product Unit Method
	d.	Deterministic Method
	e.	Bottom-up Method

PLEASE ANSWER TIMEOUSLY