4. Using a discounted rate of 12 percent,INITIAL COSTNET CASH FLOWYEAR 1YEAR 2YEAR 3YEAR 4YEAR 5PROJECT A (BROILER)K100,000(20,000)10,00040.00040.000150.000PROJECT B (LAYERS)K100,00033,00033,00033,00033,00033,000a. Determine the net present value of project A and Bb. Calculate the IRR on mutually exclusive investment of project A and B.C. Which project must the farm undertake and why?

Answered: Image /qna-images/answer/980fa279-7cc2-4b69-9f32-3001b688c025.jpg

Answered: 4. Using a discounted rate of 12…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Develop a project network. Determine the expected project completion time. What is the probability that the project completion time will be completed? With in 2 weeks earlier than the expected project completion time? With in 1.5 week more than the expected project completion time ?
Use the weighted unit cost to determine the conceptual cost estimate (using the three- point estimate technique) for a proposed parking lot that is to contain 131 parked cars. Previous projects data are given in the table below. P.S. Consider the average of all numbers as the most likely value. Project No. Cost No. of cars 1 357,000 120 2 295,200 80 3 487,000 140 4 312,000 70 5 455,000 130 459,100 135 7 389,000 90 8 307,000 60
Please no written by hand solution
At a local university, the Student Commission on Programming and Entertainment (SCOPE) is preparing to host its first rock concert of the school year. To successfully produce this rock concert, SCOPE has listed the requisite activities and related information in the following table (duration estimates measured in days). Immediate Most Activity Predecessor(s) Optimistic Probable Pessimistic A: Negotiate contract with - 10 11 12 selected musicians B: Reserve site - 8 10 12 C: Manage travel logistics A 2 7 9 for music group D: Screen & hire B 4 5 6 security personnel E: Arrange advertising C 7 7 7 & ticketing F: Hire parking staff A, D 8 9 16 G: Arrange concession sales E 6 7 11
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Q2: A company invested an amount of $85,000 to implement a project, and the expected receipts from this project during the 5 years were as follows: End the year 11/ 2 $25,000 Receipts() $10,000 3 $35,000 4 $45,000 5 $30,000 Find I.R.R and determine if the project is desirable or not If the MARR was 16%?
Project Risk Analysis Sydney, Australia’s M5 East Tunnel was constructed under strict budgetary and schedule requirements, but given the massive traffic delays now hampering commuters, the requirements may have been excessive. Due to an inexpensive computer system with a high failure rate, the tunnel’s security cameras frequently fail, requiring the operators to close the tunnel due to inability to react to an accident, fire, or excessive pollution inside the tunnel. The tunnel was built to handle 70,000 vehicles a day, but it now carries 100,000, so any glitch can cause immediate traffic snarls. A managerial risk analysis, including the risk of overuse, might have anticipated these problems and mandated a more reliable set of computers once the costs of failure had been included. Required: As the project manager, discuss the risk management process you think might have identified the danger in using a cheap computer system Discuss the type of risk analysis approach you think would…
Your Project Management Team has been appointed by a private investor (Dave Pty Ltd) to build a new Medical Centre in Melbourne. The Client own the land (approx. (90 m long by 80 m width of 7200 Sq. meters) with provided in with an approved budget of $24 million only for the Centre. The client would like to develop this site with advanced medical equipment’s required in a developed Medical Facility to meet the need for the current Healthcare Industry. As the Project Management Team of the project, you are requested to do : High Level project description and Detail Project Scope and Conclusion for Project Charter
Using the information provided in the table, the network diagram and the project completion time = 25 weeks, reduce the completion time of the project by 5 weeks in the most economical way. Activity A B с D E TI F G H Normal Time (weeks) A(3) 3 D(6) 4 6 6 6 5 7 AON network diagram B(4) 3 C(6) Normal Cost ($) 500 600 700 1,450 1,750 200 1,450 450 E(6) F(5) Crash Time (weeks) 2 3 3 4 4 5 5 3 G(7) Crash Cost ($) 890 710 1,180 2,070 2,290 200 1,740 450 H(3) Maximum Weeks Reduced 1 1 3 2 2 O 2 O Crash Cost per Week ($) 390 110 160 310 270 0 145 0

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