Project Feasibility Planning Question Paper

Project Feasibility Planning

Course:Bachelor Of Environmental Planning And Management

Institution: Kenyatta University question papers

Exam Year:2009

KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2009/2010
FIRST SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF
ENVIRONMENTAL PLANNING AND MANAGEMENT

EPM 426:
PROJECT FEASIBILITY PLANNING

DATE: Tuesday, 22nd December, 2009

TIME: 8.00 a.m. – 10.00 a.m.
------------------------------------------------------------------------------------------------------------
INSTRUCTIONS:
1. Answer
question
ONE and any other TWO questions.
2.
Start answering each question on a FRESH page of the answer booklet.

QUESTION 1
a)
Explain the following concepts as they are applied in project feasibility planning:
i)
Project
ii)
Feasibility study
iii)
Project Cycle Management
(9 marks)
b)
Distinguish the following pairs of terms as used in project feasibility planning:-
i)
Projects and programmes
ii)
Market prices and shadow prices
iii)
Financial viability of a project and economic viability of a project.
(12 marks)
c)
Explain the limitations of a feasibility study.

(3 marks)

Page 1 of 3

d)
i)
Explain the concept of “discounting” as used in feasibility studies. What
is the purpose of discounting in
the
analysis?
(3
marks)

ii)
An entrepreneur want to have K£161,051in hand in five years from now.
How much does he have to invest or deposit today, assuming that the
money he gives up spending for the time period will earn an interest at
10%
a
year”
(3
marks)

QUESTION 2
a)
“Team work is a prerequisite for a useful feasibility study preparation and a study
report which is realistic and which gives a true view of the level of acceptability
of the proposed project.” Discuss.

(10 marks)
b)
Who are stakeholders in a given project and why are they important in feasibility
study
preparation?
(5
marks)
c) i) Explain
the
factors
that you consider important in the selection of
consultants or mission team for the project feasibility study preparation.

ii)
What would be the composition of feasibility study team for a
construction project?

(5 marks)

QUESTION 3
a)
Define the term “project cycle.”

(2 marks)
b)
Using a suitable diagram, explain the various stages or events of the project cycle.

(18 marks)
QUESTION 4
a)
Give the basic requirements in relation to which pre-feasibility analysis or
evaluation
is
carried
out.
(2½
marks)
b)
A feasibility study report that is useful for project appraisal must have certain
basic
contents.

List
them.
(3½
marks)
c)
With respect to project feasibility planning, explain the following:
i)
Institutional/organizational analysis
ii)
Environmental analysis
iii)
Technical analysis

Page 2 of 3

(14 marks)

QUESTION 5
a)
Briefly explain the ways in which the quality of feasibility studies can be
improved
(8
marks)
b)
What is Cost Benefit Analysis
(CBA)? (2
marks)
c)
Explain the procedure used in the Cost Benefit Analysis (CBA) as an appraisal
technique
in
feasibility
studies. (10
marks)

Page 3 of 3

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