FACULTY OF SCIENCE AND TECHNOLOGY

ASSIGNMENT SUBMISSION AND ASSESSMENT

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EMCA5103
PROJECT COST ANALYSIS AND APPRAISAL
MAY 2017
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INSTRUCTIONS TO STUDENTS

1. This assignment contains question that is set in English.

2. Answer in English only.

3. Your assignment should be typed using 12 point Times New Roman font and 1.5 line spacing.

4. You must submit your hardcopy assignment to your Facilitator and ON-LINE via the
MyVLE. Refer to the portal for instructions on the procedures to submit your assignment on-
on
line. You are advised to keep a copy of your submitted assignment and proof of the
submission for personal
nal reference. Your assignment must be submitted on (6-8 November
2015).

5. Your assignment should be prepared individually. You should not copy another persons
assignment. You should also not plagiarise another persons work as your own.

EVALUATION
This assignment accounts for 60% of the total marks for the course.
ASSIGNMENT OBJECTIVES:
To introduce the basic tools of welfare economics, which are, consumer and producer
surplus, and to use them to evaluate the efficiency of free markets. In addition, this
assignment would assist the candidate to develop project skills in project assessment, to
be analytical and to develop critical thinking and problem solving skills in evaluating
alternative courses of action in a real-world scenario.

ASSIGNMENT QUESTION 1

The phenomenal technological advances in the information and technology arena has
reduced the cost of producing computers. In the context of this statement, you are
required to prepare a detailed answer to the following questions:

a) Draw a supply and demand diagram to show what happens to price, quantity,
consumer surplus and producer surplus in the market for computers.

b) Computers and adding machines are substitutes. Use a supply and demand diagram
to show what happens to price, quantity, consumer surplus and producer surplus in
the market for adding machines. Should adding machine producers be happy or sad
about the technological advance in computers?

c) Computers and software are complements. Draw a supply and demand diagram to
show what happens to price, quantity, consumer surplus and producer surplus in the
market for software. Should software producers be happy or sad about the
technological advance in computers?

d) Does this analysis help explain why software producer Bill Gates is one of the worlds
richest men?
[Total: 50 marks]
ASSIGNMENT QUESTION 2

a) In corporate finance, there are many investment appraisal methods. Some of the
more important ones, are, the Net Present Value method, The Internal Rate of Return
method, the Payback method and the Accounting Rate of Return method. You are
required to compare and contrast all these methods by clearly explaining their
inherent strengths and weaknesses.

b) In capital investment, companies face both soft and hard capital rationing. What do
you understand by soft and hard forms of capital rationing? Discuss TWO
approaches available to companies to resolve capital rationing problems.

[Total: 50 marks]

ADDITIONAL GUIDELINES / ASSIGNMENT FORMAT:

Your assignment should be typed on A4 paper using 12-point Times New Roman
and 1.5 spacing.
Your assignment should NOT exceed 3000 words, not including appendix and
reference.
Your must provide references. References should use the American
Psychological Association (APA) format.
References should include the latest journal/book publication (year 2009 and
onwards).
You are to submit a softcopy of your assignment via email. You must receive
acknowledgement email from your facilitator to confirm submission.
Plagiarism is not acceptable. If you are not sure what is meant by plagiarism,
refer to the various websites, which discuss this matter, e.g.
owl.english.purdue.edu/handouts.
Plagiarised assignments will receive a Fail mark.