Year 1 2 3 5 Attendance 30,000 34,000 36,250 38,500 41,000
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
The Astro World amusement park has the opportunity
to expand its size now (the end of year 0) by purchasing
adjacent property for $250,000 and adding attractions at
a cost of $550,000. This expansion is expected to increase
attendance by 30 percent over projected attendance with-
out expansion. The price of admission is $30, with a $5
increase planned for the beginning of year 3. Additional
operating costs are expected to be $100,000 per year.
Estimated attendance for the next five years, without
expansion, is as follows:
a. What are the pretax combined cash flows for years 0
through 5 that are attributable to the park’s expansion?
b. Ignoring tax,
determine how long it will take to recover (pay back) the
investment.
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