at a 5% discount rate two projects A and B have a NPV of 30.72 and 80.18, respectively Project A is estimated to last for 3 years while B is 9 years. If they were mutually exclusive which on will you pick and why?
Q: Kiley Electronics is considering a project that has the following cash flow data. What is the…
A: Option a: This option is correct. Step 1:We have to calculate the IRR of the project.We will use the…
Q: Assume we are planning to develop a room reservation system that is estimated to have 400 story…
A: The PM has also got everyone in tune with what they're supposed to do and when it needs to be ready.…
Q: Should a GC issue a purchase order or a subcontract agreement for each of the following different…
A: Purchase orders and subcontracts are two common types of agreements used in the construction…
Q: 1. Suppose we are considering the question of how much capacity to build in the face of uncertain…
A: Find the Given details below: Given details: Demand X Units Probability of X 0 0.05 1 0.1…
Q: What does a project’s NPV of $1,500 mean?
A: The Net Present Value is excess of Present Value of Cash Inflow over Present Value of Cash Outflow.…
Q: Use the generated information to calculate the NPV ofnthe project, to decide whether to go ahead…
A: Net present value (NPV) is the difference between the present value of cash inflows and the cost of…
Q: At a decision point in a decision tree, which machine would you select when trying to maximize…
A: The objective of this question is to determine which machine to select at a decision point in a…
Q: Use the following payoff table to complete parts (a) through (j). The probability of event 1 is…
A: Given data is
Q: The minimum cost of crashing the following project at Sawaya Robotics by 4 days is $1,875 (enter…
A: A network diagram shows the sequence of the task that is done to complete a project. It usually…
Q: Joy who owns a boutique is considering three options for her facility next year. She can expand her…
A: A payoff table, in decision theory, is a table that illustrates the outcomes (or payoffs) associated…
Q: Sunk cost must be considered in a future NPV calculation if a dormant project is revisited at a…
A: Sunk costs refer to past expenditures that cannot be recovered, regardless of what future decisions…
Q: Solve the following decision tree and create risk profiles and cumulative risk profiles for the…
A:
Q: Manager Cafe "Blue Sky" is considering investing 2 (two) projects. Project X is an investment of $…
A:
Q: Aria Acoustics, Incorporated (AAI), projects unit sales for a new seven-octave voice emulation…
A: Approach to solving the question: In order to effectively address the financial analysis of Aria…
Q: Randall Systems in considering four projects A, B, C and D that have risks associated with the…
A: The best alternative can be evaluated by taking the sum of the product of EUAW and the probabilities…
Q: Answer the following: Use a data table to determine the range of costs you might encounter when…
A: Here, I will determine the range of costs that we will encounter,
Q: Using the diagram, find: The critical path. How long it will take to complete the project? How does…
A: A network diagram is a visual representation of a project which helps to identify the activity…
Q: What is the Expected Value with Perfect Information?
A: Production is the process in which inputs are combined to have the required output. It includes a…
Q: Ricky is completing four tuitions of higher learning as options for a master’s in Business…
A: Find the given details below:
Q: Rare Agri-Products Ltd. is considering a new project with a projectedlife of seven (7) years. The…
A: Financial Analysis of Rare Agri-Products Ltd.'s ProjectTerminal Cash Flow (TCF):Year 7 Salvage…
Q: As the project manager you have been asked by AstraZeneca to assess the viability of two (2)…
A: The question is related to Capital Budgeting. The Net Present Value is the exess of Present Value of…
Q: Calculate the sales variance in dollars and the sales variance as a percentage given the following…
A: Sales variance: Sales volume variation essentially gauges the sales performance as a result of…
Q: What exactly is meant by the term "dogpile effect," and how does it work? Is there anything you can…
A: The "dogpile effect" refers to a situation where a sudden surge of web traffic, often generated by a…
Q: Gm
A: Approach to solving the question: Detailed explanation:Examples: Key references:
Q: Develop an AON network for this problem. b) What is the critical path? c) What is the total project…
A: Given the data shown below, For this dataset, I would prepare the AON network diagram, this…
Q: 4. Using a discounted rate of 12 percent, INITIAL COST NET CASH FLOW YEAR 1 YEAR 2 YEAR 3 YEAR 4…
A:
Q: Based on the following table. Bid Ask EURUSD 1M FWD 7.05 7.34 EURUSD 2M FWD 14.99 15.15 EURUSD 3M…
A: Given, Spot rate: Bid : 1.1411 Ask : 1.1422 3M Forward rate: Bid = 1.1411 + 0.002257 = 1.143357 Ask…
Q: Refer to exercise #6 (page 54) in your textbook. Given the information in that exercise, which one…
A: It seems like you're referencing a specific exercise from a textbook that involves prioritizing…


Step by step
Solved in 3 steps

- You are a project manager in the water and sanitation department in Johannesburg. The suburb of Soweto has recently come into the spotlight due the lack of water reticulation in the southern part. Residents have approached the president of South Africa to voice their discontent. The president has met with the mayor of Johannesburg and indicated that the water infrastructure needs to be built and ready for service in six months’ time. There cannot be any slippage to the timeline, must deliver within budget, with the resources allocated and within the predetermined quality standards. As a project manager, your mandate is to work with all stakeholders to deliver or risk losing your job. Project costs need to be categorised correctly to enable strict management of all project costs during the project lifecycle. Appraise the different project cost types for your project so that your finance department can provide you with the support you require in managing each cost. Ensure that examples…Given the information below, estimate the probability that the noncritical path Upper B dash Upper C dash Upper GB-C-G will take more than 1515 weeks. Hint: Subtract from 1.0 the probability that Upper B dash Upper C dash Upper GB-C-G will take 1515 weeks or less. Refer to the standard normal table LOADING... . Activity Expected Time (weeks) Variance A 3.53.5 1.001.00 B 5.05.0 0.690.69 C 3.53.5 0.150.15 D 11.511.5 1.781.78 E 6.56.5 2.402.40 F 8.58.5 2.552.55 G 4.54.5 0.690.69 Part 2 The probability that this path will take more than 1515 weeks to complete is enter your response here. (Enter your response rounded to four decimalConsider a project with an initial investment of $60,000, a 6 year useful life (and study period), and a $10,000 salvage value. You expect an annual net revenue of $15,000 (before tax), a MARR before tax of 15.3%, and an effective tax rate of 35%. The capital equipment is to be depreciated using MACRS GDS and a 3 year class life. A)For the cash flow , compute after-tax MARR and evaluate the cash flow using an equivalent worth method. B) Develop the after-tax cash flows for the project of using a 4 year class life and MACRS ADS. Draw the after-tax cash flow diagram.
- Note: end of the question answer also given. I want A&D only. Onc aagain remember I want only A&D part A. What is the probability that path A-B-D-F-G will take from 100 to 120 days to complete? Answer = 40.2% B. What is the probability that path A-C-E-G will take less than 85 days to complete? Answer = 32.64% C. If the contract for the above project is 120 days, what is the chance of meeting the schedule? Answer = 86.3% D. What duration (number of full days) should be used to be at least 90% confident of finishing on time? Answer = 125 days - Probability of 93%An R&D project in a company is working on a project to make a sample product to be displayed at an international fair in Las Vegas held in 18 months. With additional equipments, the company can make sure they make the sample in 18 months. Develop an optimal crashing time-cost solution to help the company in this project to be ready on time for the fair. C, 4 B, 3 А,5 H,7 D, 3 F, 9 G, 2 Cost per month Activity Normal Time to crash 9,000 4,000 6,000 4,000 2,000 5,000 2,000 9,000 A В C 4 E F 9. G 2 H 7 Duration Path Activity to crash (months) АВСН ADEH FGHb. What is the expected value for the rezoned apartments, if the rezoning cost is included (but land cost is excluded)? Note: Do not round your intermediate calculations. Enter your answers in millions rounded to 2 decimal places. Negative amounts should be indicated by a minus sign. Expected value million c. If the land is rezoned, what should the contractor decide? O Build shopping center O Build apartments d. What is the expected revenue, if the land is not rezoned (excluding the land cost)? Note: Do not round your intermediate calculations. Enter your answers in millions rounded to 2 decimal places. Negative amounts should be indicated by a minus sign. Expected revenue million e. What is the expected net profit of entire project, including all applicable costs? Note: Do not round your intermediate calculations. Enter your answers in millions rounded to 2 decimal places. Negative amounts should be indicated by a minus sign. Expected net profit million
- Suppose you are a project manager of a power plant project and there is a penalty in your contract with the main client for every day you deliver the project late. You need to decide which sub-contractor is appropriate for your projects critical path activities. But while selecting a sub-contractor, you should take into consideration the costs and delivery dates. • Sub-contractor A bids 200,000 OMR. You estimate that there is a 35% possibility of completing 50 days late. As per your contract with the client, you must pay a delay penalty of 4,500 OMR per calendar day for every day you deliver late.• Sub-contractor B bids 260,000 OMR. You estimate that there is a 13% possibility of completing 15 days late. As per your contract with the client, you must pay a delay penalty of 4,500 OMR per calendar day for every day you deliver late. Determine which sub-contractor is appropriate for your projects critical path activities. Both sub- contractors promise successful delivery and high-quality…Rare Agri-Products Ltd. is considering a new project with a projectedlife of seven (7) years. The project falls under the government’ssubsidy program for encouraging local agricultural products and iseligible for a one-time rebate of 25% on any initial equipmentinstalled for the project. The initial equipment (IE) will cost$41,000,000. At the end of year 1, An additional equipment (AE) costing$3,500,000 will be needed at the end of year 3. At the end of seven(7) years, the original equipment, IE, will have no resale value butthe supplementary equipment, AE, can be sold for $50,000. A workingcapital of $1,350,000 will be needed.The project is forecast to generate sales of agri-products over theseven years as follows:Year 1 70,000 unitsYear 2 100,000 unitsYears 3-5 250,000 unitsYears 6-7 325,000 unitsA sale price of $150 per unit for the first two years is expected andthen decline to $90 per unit thereafter as the newness of the productloses some sheen. The variable expenses will amount…We are planning to develop a room reservation system that is estimated to have 400 story points of features. Let’s say our team’s velocity on two-week sprints ranges between 20 and 25 story points. Our project will start on Dec 1, 2021. If our customer wants the project to be in production by end of June 22, how likely will the project be successful? Why? Show your calculations.
- Discuss in brief slack variables?Quorex is evaluating two mutually exclusive projects. Project A has a net investment of $50,000 and net cash flows over a six-year period of $13,000 per year (NOTE: that project requires a reinvestment with the same cost and cash flow for another six years). Project B has a net investment of $48,500, but its net cash flows of $8,740 per year will occur over a 12-year period. If Quorex has a cost of capital of 14% for these projects, which project, if either, should be chosen, and what is its NPV?The expenses for your project are consistently showing the same CPI for each month of the project completed so far, and there are two months left in the project. Which formula should you use to calculate the project's estimate at completion? A) AC + ETC B) BAC / CPI C) AC + (Remaining PV / CPI) D) AC + BAC - EVEV