Principles Of Operations Management
11th Edition
ISBN: 9780135173930
Author: RENDER, Barry, HEIZER, Jay, Munson, Chuck
Publisher: Pearson,
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Chapter 7.S, Problem 18P
Using the data in Problem S7.17:
a) What is the break-even point in dollars for proposal A if you add $10,000 installation to the fixed cost?
b) What is the break-even point m dollars for proposal B if you add $10,000 installation to the fixed cost?
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You are the Project Analyst for Nairobi Project Advisors who have been asked by a client to advise on which of the following two projects should be accepted. Each project costs US$ 10,000 and each entails a 12% cost of capital:
Year
Expected Net Cash flows
Project X
Project Y
0
($ 10,000)
($ 10,000)
1
6,500
3,500
2
3,000
3,500
3
3,000
3,500
4
1,000
3,500
a) Advise on which project should be undertaken using the Pay Back Period (PBP), Net Present Value (NPV), Internal Rate of Return (IRR), and Modified Internal Rate of Return (MIRR) assuming:
i. The projects are independent
ii. The projects are mutually exclusive
*(e) Draw manually the appropriate network diagram (using PDM) and then find (and also provide as a table) for each of the activities by d: early start (ES), early finish (EF), late start (LS), late finish (LF) and total floats and total slacks and provide them in a table form.
Answer:
*(e) Draw manually the appropriate network diagram (using PDM) and then find (and also provide as a table) for each of the activities by d: early start (ES), early finish (EF), late start (LS), late finish (LF) and total floats and total slacks and provide them in a table form.
Chapter 7 Solutions
Principles Of Operations Management
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