MNB2601 - ASSESSMENT 6 - QUESTIONS AND ANSWERS - SEMESTER 2 - 2024

2024 – S1 – MNB2601 – ASSESSMENT 6 – Q&A 1 Assessment 6 Started on Tuesday, 21 May 2024, State Finished Completed on Tuesday, 21 May 2024, Time taken Marks 54.00/60.00 Grade 86.67 out of 100.00 Question 1 What is the term for the rate that is used to discount future values to present values? a. investment rate b. compound rate c. discount rate d. annual rate Question 2 What are the two fundamental questions that the business feasibility study seeks to ANSWER? a. Who are the competitors, and what is their market share? b. What is the organisational structure, and how many employees are needed? c. What is the product's description, and how much will it cost to develop? d. Can we do this, and how can the organisation benefit from this? 2024 – S1 – MNB2601 – ASSESSMENT 6 – Q&A 2 Question 3 The company intends to invest in a business improvement for Project Z with an initial cost of R15 000; the required return rate is 12% and the payback period is four years. The projected net annual cash flows for the project are as follows: Project Z Year 0 -15 000 Year 1 2 500 Year 2 3 000 Year 3 3 100 Year 4 3 500 What is the IRR of the proposed project? a. -7.71 b. 71.70 c. 81.80 X d. -6.54 Feedback Your answer is incorrect. Question 4 What is the responsibility of the portfolio manager regarding human resource capacity? a. Balancing capacity for all projects equally b. 2024 – S1 – MNB2601 – ASSESSMENT 6 – Q&A 3 Focusing on low -priority projects c. Managing project timelines d. Ensuring capacity meets demand, especially for high-priority projects Question 5 The company intends to invest in a business improvement for Project P with an initial cost of R35 000; the required return rate is 13% and the payback period is four years. The projected net annual cash flows for the project are as follows: Project P Year 0 -35 000 Year 1 2 900 Year 2 3 000 Year 3 3 500 Year 4 3 500 What is the IRR of the proposed project? a. -28.79 X b. 26.62 c. - 29.97 d. -26.43 2024 – S1 – MNB2601 – ASSESSMENT 6 – Q&A 4 Feedback Your answer is incorrect. Question 6 What is the primary focus of strategy formulation in strategic management? a. Selecting strategies to attain goals b. Identifying project risks c. Analysing the management environment d. Setting project objectives Question 7 “They are used to manage the availability of, and demand for the resource.” Select what is associated with the above statement in portfolio resource management. a. Planned cost b. Planned capital expenditure c. Capacity and demand X d. Resource metrics Feedback Your answer is incorrect.