Consider the following:ActivityA< ש ס ח דBCNormaltime4W NCrash time Normal cost Crash cost Predecesso313432222002400500220060036001000386F3G4What is the cost for crashing the project by 5 days?260028005002600120042002000ABсD.E

Project crashing is a process which helps to reduce the project duration using additional cost and…

Answered: Consider the following: Activity A B C…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 21P

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Haya International are considering a project that is susceptible to risk. An initial investment of OMR90,000 will be followed by four years each with the following ‘most likely’ cash flows (there is no inflation or tax): OMR OMR Annual Sales 400,000 (volume of 100,000 units multiplied by estimated sales price of OMR 4) Annual Costs Labour 200,000 Materials 40,000 Other 10,000 250,000 (250,000) 150,000 The initial investment consists of OMR80,000 in machines, which have a zero scrap value at the end of the four-year life of the project and OMR10,000 in additional working capital which is recoverable at the end. The discount rate is 10 per cent. Required : Calculate the NPV and show the sensitivity of NPV to changes in the following: Increase in sales price by 10%; Decrease in discount rate by 10%
Limbo Technologies has embarked on another project that has an estimated completion time of 40 weeks and a standard deviation of 5 weeks. It is estimated that the project completion time is normally distributed. i)What is the probability of finishing the project in 38 weeks or less? ii)The due date for the project is set so that there is a 90% chance that it will finish by this date. What is the due duration? ACTIVITY PREDECESSOR NORMAL TIME (WEEKS) CRASH TIME (WEEKS) NORMAL COST ($) CRASH COST ($) A - 4 2 1000 1600 B - 6 3 3000 3500 C A 3 1 2500 3000 D A,B 6 5 1500 1850 E D 4 2 3500 4200 F C 4 3 2250 3000 G D 3 2 1900 2500 H F,G,E 2 1 400 500
10.6 This optional problem requires knowledge of statistics. Heywood Home Healthcare is evaluating a project with the following net cash flows and probabilities: Time 0 Year 1 Year 2 Year 2 Year 3 Year 4 Prob = 0.2 ($100,000) 20,000 20,000 20,000 20,000 30,000 Prob = 0.6 ($100,000) 30,000 30,000 30,000 30,000 40,000 Prob = 0.2 ($100,000) 40,000 40,000 40,000 40,000 50,000 The year 5 values include salvage value. Heywood’s corporate cost of capital is 10 percent. What is the project’s expected NPV on the basis of the scenario analysis? What is the project’s standard deviation of NPV? Assume that Heywood’s managers judge the project to have lower-than-average risk. Furthermore, the company’s policy is to adjust the corporate cost of capital up or down by 3 percentage points to account for differential risk. Is the project financially attractive?
Please no written by hand and no emage The following data are available for two mutually exclusive projects: Project A $16,900,000 PW(benefits) PW(operating and maintenance costs) PW(capital cost) 4,700,000 7,600,000 Complete parts (a) through (e) below. a. Compute the benefit-cost ratios for both projects. Project B $15,100,000 9,300,000 3,000,000 The ratios for projects A and B, respectively, are 1.374 and 1.228 (Type integers or decimals rounded to three decimal places as needed.) b. Compute the modified benefit-cost ratios for both projects. The ratios for projects A and B, respectively, are 1.605 and 1.933 (Type integers or decimals rounded to three decimal places as needed.) c. Compute the benefit-cost ratio for the increment between the projects. Select the correct choice below and, if necessary, fill in the answer box to complete your choice. OA. The ratio is (Type an integer or decimal rounded to three decimal places as needed.) B. The ratio is undefined. d. Compute the…
n 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 to 30% of salesrevenue. Fixed cash operating expenses will amount to $1,100,000 peryear.The company falls in the 25% tax category for ordinary income and 40%tax category for capital gain.The initial equipment is depreciated as per the 7-year MACRS systemand the additional equipment is depreciated on a straight-line basis.In the event of a negative taxable…
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The expected number of days to completion for a different project is E(x) = 3.32 The variance of days to completion is var(x) = 1.22 The project cost involves A fixed cost (in thousands of dollars) of FC = $83.783 A variable cost for each day taken to complete the project ($000) VC = $9.774 16 The standard deviation of the project cost is $________. a 13.041 b 12.245 c 11.497 d 10.796
Management Firm is a consulting company that specializes in the development of decision support systems. Time (Weeks) Activity Description ImmediatePredecessor Optimistic Most Probable Pessimistic A Report generation 2 8 12 B Web scraping 4 9 11 C Testing A, B 1 1 1 (A) Based solely on the critical path, estimate the probability that the project will be complete within 11 weeks. (Round your answer to four decimal places.) (b) Using all paths through the project network, estimate the probability that the project will be complete within 11 weeks. (Round your answer to four decimal places.)
A building contractor has a contract which will expire in 30 days. He has 80 men on the job and can finish the job in 50 days. The wage per day of 40 men is P6.00 each and that of the other men is P4.00 each for 8 hours work per day. The fine or liquidated damages for delay in the work is P100.00 per day. How many more men should the contractor add in order to complete the work on time? Assuming that the additional men to be added will be paid P6.00 per day, will the contractor save money by employing enough men for him to complete the work on time or by not adding more men and paying the fine? How much is the savings, if any? No overtime work is permitted.
The expected number of days to completion for a different project is E(x) = 3.32 The variance of days to completion is var(x) = 1.22 The project cost involves A fixed cost (in thousands of dollars) of FC = $83.783 A variable cost for each day taken to complete the project ($000) VC = $9.774 15 The variance of project cost is ________. a 116.548 b 113.153 c 109.858 d 106.658

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Consider the following: Activity A B C D Normal time 4 DEFG 238 2 Crash time Normal cost Crash cost Predecess 6 3 4 3 1 34 4 3 2 2 What is the cost for crashing the project by 5 days? 2200 2400 500 2200 600 3600 1000 2600 2800 500 2600 1200 4200 2000 A B с D,E