Given the following financing project being considered by a venture firm, find the probability of completing the path with the longest expected duration by 17 weeks. By 24 weeks. By what date is management 90 percent sure that this path will be completed? refer to first pic If the venture firm can complete the project for the customer within 18 weeks, it will receive a bonus of $10,000. But if the project delays beyond 22 weeks, it must pay a penalty of $5,000 due to lost opportunity.
If the firm can choose whether or not to bid on this project, what should its decision be if the project is only a breakeven one normally? Figure 8.15a shows the network. refer to second pic
Given the following financing project being considered by a venture firm, find the probability of completing the path with the longest expected duration by 17 weeks. By 24 weeks. By what date is management 90 percent sure that this path will be completed? refer to first pic If the venture firm can complete the project for the customer within 18 weeks, it will receive a bonus of $10,000. But if the project delays beyond 22 weeks, it must pay a penalty of $5,000 due to lost opportunity. If the firm can choose whether or not to bid on this project, what should its decision be if the project is only a breakeven one normally? Figure 8.15a shows the network. refer to second pic
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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1.15
Given the following financing project being considered by a venture firm, find the probability of completing the path with the longest expected duration by 17 weeks. By 24 weeks. By what date is management 90 percent sure that this path will be completed?
refer to first pic
If the venture firm can complete the project for the customer within 18 weeks, it will receive a bonus of $10,000. But if the project delays beyond 22 weeks, it must pay a penalty of $5,000 due to lost opportunity. If the firm can choose whether or not to bid on this project, what should its decision be if the project is only a breakeven one normally? Figure 8.15a shows the network.
refer to second pic
Transcribed Image Text:Activity*
1-2: Collect firm
data
1-3: Analyze data
1-4: Determine need
Time (weeks)
Optimistic
5
2-6: Determine
profitability
3-6: Evaluate risk
3-7: Interview owners
3-5: Check references
4-5: Evaluate industry
5-7: Evaluate economy
6-7: Decide funding
10
2
1
4
4
2
0
2
1
Most
Likely
11
10
5
7
4
7
2
6
8
4
Pessimistic
11
10
8
13
10
10
2
6
14
7
Transcribed Image Text:Start
1
2
3
6
7
5
End
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