# Project Management2 Assignment

Words: 580

Complete the following problems and upload to this assignment:  Chapter 7 problems – 3 & 4 in the Meredith book on page 319. 3. Conduct a discounted cash flow calculation to determine the NPV of the following project, assuming a required rate of return of 0. 2. The project will cost \$75000 but will result in cash inflows of \$20000, \$25000, \$30000, and \$50000 in each of the next four years. |Year |Cash Flow |PresentValue | |T=0 |-75000/(1+. )^0 |-75000 | |T=1 |20000/(1+. 2)^1 |16666. 67 | |T=2 |25000/(1+. 2)^2 |17361. 11 | |T=3 |30000/(1+. 2)^3 |17361. 11 | |T=4 |50000/(1+. 2)^4 |24112. 5 | Net Present Value=75,501. 54 – 75,000. 00=501. 54 4. In Problem 3, assume that the inflows are uncertain but normally distributed with standard deviation of \$1000, \$1500, \$2000, and \$3500, respectively. Find the mean forecast NPV using Crystal Ball. What is the probability the actual NPV will be positive? Trying to figure out how to download Crystal Ball trial version is a wild loop, I click on the “Textbook users click here” takes me back to the same page where I started from. Chapter 8 problems – 2, 4, 8 and 10 in the Meredith book on page 374 & 375. 2. Convert the AON diagram below to an AOA diagram. pic] 4. Given the diagram below, find: a. The critical path. A10 -> D7 -> E11 -> G5 b. How long it will take to complete the project. 33days 8. Given the following network, a. What is the critical path? A8 -> C3 -> E6 -> G5 c. How long will it take to complete this project? 22Days b. Can activity B be delayed, without delaying the completion of the project? If so, how many days? Yes by 2 day 10. Find a. The AOA network and the critical path. b. All event slacks c. Critical path to event D. d. Critical path probability of completion in 14 days. e. The effect if CD slips to 6 days; to 7 days; to 8days. Activity |a |m |b |m-a=b-m |TE=(a+4m+b)/6 |variance |deviation | |AB |3 |6 |9 |Yes |6 |1 |1 | |AC |1 |4 |7 |Yes |4 |1 |1 | |CB |0 |3 |6 |Yes |3 |1 |1 | |CD |3 |3 |3 |Yes |3 |0 |0 | |CE |2 |2 |8 |No |3 |1 |1 | |BD |0 |0 |6 |No |1 |1 |1 | |BE |2 |5 |8 |No |5 |1 |1 | |DF |4 |4 |10 |No |5 |1 |1 | |DE |1 |1 |1 |Yes |1 |0 |0 | |EF |1 |4 |7 |yes |4 |1 |1 | [pic] Activity |TE |variance |ES |LS |EF |LF |SLACK | |AB |6 |1 |0 | |6 | | | |AC |4 |1 |0 | |4 | | | |CB |3 |1 |4 | |7 | | | |CD |3 |0 |4 | |7 | | | |CE |3 |1 |4 | |7 | | | |BD |1 |1 |6 | |7 | | | |BE |5 |1 |6 | |11 | | | |DF |5 |1 |11 | |12 | | | |DE |1 |0 |11 | |8 | | | |EF |4 |1 |8 | |12 | | | Chapter 9 problems – 2, 8 and 12 in the Meredith book on page 424 & 425. 2. Using the network above and the additional information below, find: a. The crash cost per day b.

Which activities should be crashed to meet a project deadline of 13 days at minimum cost? Assume partial crashing is allowed. [pic] Slope=(crash cost – normal cost)/(crash time – normal time) ActivitySlopeCrash Days A-2003 B-37. 51 C-504 D-503 Activity B would be the best to reduce since it only cost \$37. 50 day and that would get us to the 13 days. 8. Given the data in Problem 7, determine the first activities to be crashed by the following priority rules: a. Shortest task first. b. Most resources first (use normal cost as the basis). c. Minimum slack first. d. Most critical followers. e. Most successors. Slope=(crash cost – normal cost)/(crash time – normal time) Activitycrash costnormal costcrash timenormal timeSlope 1-26435-1 -35315-. 5 2-474510-. 6 3-46427-. 4 2-65326-. 5 4-696511-. 6 4-56346-1. 5 6-74215-. 5 5-75214-1 a. 5-7 – County West b. 4-6 – County East c. Activity – City northeast and City Southeast both with a slack of 3 d. Activity – County East 12. The network for shooting a TV commercial as shown in the table has a fixed cost of \$90 per day, but money can be saved by shortening the project duration. Find the least-cost schedule. Crash partially activity 1-2 Contract personnel by 1 day at a cost of \$120 and crash partially activity 2-4 Contract studio for a cast of \$125. ———————– 6 4 15 15 10 10 10 10 10 3 3 3 3 0 0 0 END D5 C7 B3 A4 start