PMAN 650Final ExamBefore you begin the exam, rename this file as PMAN650_Final_Exam_yourlastname. Not renaming your file prior to posting will result in an automatic 5 point deduction. If you are notfamiliar with renaming files, use the file save-as function to accomplish the objective.Multiple choice 5 points each1. An integrated project management approach is one that:a. Develops new products with the use of multi-functional teamsb. Exposes the front-loading of baselinesc. Allows the project to equate the defined scope with authorized resources, bothwithin the master scheduled. Focuses on performance that falls outside of a predetermined baseline2. The three dimensions of performance in Earned Value Project Management are:a. Actual Cost, Earned Value, and Schedule Varianceb. Actual Cost, Earned Value, and Planned Valuec. Actual Cost, Planned Value, and Scheduled Varianced. Cost Variance, Planned Value, and Schedule Variance3. At some point in the life of a project, the project manager determined the following dataon a $1,250,000 authorized budget project: amount of earned value $350,000. At thatpoint, the value of the planned work was $750,000, and actual cost was $750,000. Basedon this information, the Schedule Performance Index for this project was:a.0.28b.0.47c.0.53d.0.60PMAN 650Final Exam4. Using the data provided in Question No. 3 above, and assuming a linear cost function, theproject manager can estimate that actual cost of the project would be closest to (figuresrounded to nearest hundred thousand):a.$4,500,000b.$2,700,000c.$2,400,000d.$2,100,0005. Using Earned Value Management in projects, multi-functional control account plansshould have:a.i.a.A Precise Scope of work, a Schedule, a Budget, and a CAP ManagerA point of Management control from WBS, Homogenous Work scope,Multiple Functions, and Earned Value Performance Measureda.i.b.Organizational Breakdown Structure, Work Breakdown Structure, ControlAccount Plans, and Points of Management Controla.i.c.Exercises 25 points each6. Project UMUC is to produce 200 widgets and is scheduled to take five weeks. Each unitis planned to cost $90. The project is severely cost constrained. Performance data for theproject at the end of week three is presented below:120 total units were planned to be produced130 units have actually been producedThe financial manager reported that the business had actually spent $13,000 onthe project by the end of week three.Answer the following questions; show all work:a. Quantify cost variance. Is the project ahead or behind budget?b. Quantify schedule variance. Is the project ahead or behind schedule?c. Quantify cost performance efficiency. Is the project performing better or worsethan planned?PMAN 650Final Examd. Quantify schedule performance efficiency. Is the project performing better orworse than planned?e. What is the forecast of project cost at completion assuming current costperformance efficiency remains the same? How much budget variance is expectedat completion?f.What is the forecast of funding needed to complete the project (from this pointforward)?g. What cost performance efficiency would be required for the remainder of theproject to complete the project within the original budget?h. As the project financial manager, what recommendations would you make?7. Proust Manufacturing Co. produces personal fitness machines. The once successful line isno longer selling well, so the company is considering production of a new improvedcardio-vascular machine. This can be done by buying needed production equipment. Theafter tax cash flow for buying this equipment is $700,000, at the beginning of Year 0. Thealternative to produce the same output, is to lease that same equipment through four equalpayments of $185,000 each year paid at the beginning of the year. The required rate ofreturn (hurdle rate) for this business is 12 percent. Assume no taxes. Revenue from salesof the new cardiovascular machines is expected to be:Year 1 – $375,000Year 2 $250,000Year 3 $140,000Year 4 $75,000Calculate the net present value of both the new purchase option and the lease option.Show all work. Determine the best option for Proust and justify your answer. (20 pts.)8. This question is based on the information provided in the abbreviated year-end IncomeStatement and abbreviated year-end Balance Sheet for NMC Corporation shown below.PMAN 650Final ExamPMAN 650Final ExamNMC Corporation IncomeStatement for the CalendarYear (January 1 – December31)Thousands of dollars(except stock price,earnings per share, anddividends per share)Net sales$3000Cost and expenses:$2734EBIT$266Less interest expense:$66Earnings before taxes$200Taxes$80Net income before preferreddividendsDividends to preferredstockholders$120$8Net income available tocommon stock holders$112Per share common stock:Stock Price$26.50Earnings per share$2.24Dividends per share$1.84NMC CorporationBalance Sheet(Average ofbeginning and end ofyear)CashMarket securitiesAssets(thousandsof dollars)$50 Accounts payable$0 Notes payableLiabilitiesand Equity(thousandsof dollars)$60$100PMAN 650Final ExamAccounts receivable$350 Accrued Wages$10Inventories$300 Accrued Taxes$130Total Current Assets:$700 Total Current Liabilities:$300Net plant andequipment:$1300 Total Long Term Debt:$800Total Stock HoldersEquity:Total Assets:$2000$900Total liabilities andequity:$20008a. Calculate the NMC financial ratios contained in the following tableFinancial RatiosNMC ValuesIndustryValuesCurrent Ratio2.5 timesQuick (Acid) Ratio1.0 timesTotal Debt to Total Assets40%Return on Assets (ROA)9%Price/Earnings Ratio12.5 times8b. Compare your results to the industry ratios and describe what NMC should do to improveits position in the market.