**Project Management NPTEL Assignment 3 Answers 2021**:- All the Answers provided here to help the students as a reference, You must submit your assignment at your own knowledge.

**1.The formulae such as net income available for common stakeholders divided by total asset is used to calculate **

- return on total assets
- return on total equity
- return on debts
- return on sales

**2. Which of the following has Net profit as the basis for calculation **

- Net present value
- Average rate of return
- Internal rate of return
- Payback period

**3. Internal rate of return is the **

- Rate at which discounted cash inflow is more than discounted cash outflow
- Rate at which discounted cash inflow is less than discounted cash outflow
- Rate at which discounted cash inflow is equal to the discounted cash outflow
- Either (a)or(b)

**4. Which of the following will not be a relevant factor when using the payback method of capital investment appraisal? **

- The cost of the asset
- The cash flows generated by the asset up to the payback period
- The timing of the first cash inflow
- The total cash flows generated by the asset

**5. Why is the payback method often considered inferior to discounted cash flow in capital investment appraisal? **

- It only takes into account the future income of a project
- It is more difficult to calculate
- It does not take account of the time value of money
- It does not calculate how long it will take to recoup the money invested

**6. The use of a smoothing technique is appropriate when**

- random behavior is the primary source of variation.
- seasonality is present
- data exhibit a strong trend.
- all of the above are correct

**7.** **The greatest smoothing effect is obtained by using **

- a moving average based on a small number of periods.
- exponential smoothing with a small weight value.
- the root-mean-square error
- the barometric method.

**8. The price elasticity of demand can range between **

- negative one and one.
- zero and infinity.
- zero and one.
- negative infinity and infinity

**9. A leading indicator is a measure that usually **

- changes at the same time and in the same direction as the general economy.
- responds to a change in the general economy after a time lag.
- changes in the same direction as the general economy before the general economy changes.
- has all of the properties listed above.

**10. Which is not the qualitative method of demand forecasting? **

- Delphi technique
- Time projection method
- Moving average method
- Exponential smoothing method

**Answers: –**

**1 – (A), 2 – (B), 3 – (C), 4 – (D), 5 – (C), 6 – (A), 7 – (B), 8 – (B), 9 – (C), 10 – (A)**

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**Project Management NPTEL Assignment 3 Answers 2021**:- All the Answers provided here to help the students as a reference, You must submit your assignment at your own knowledge.