# Project Management Assignment 2

Pages: 6 (840 words) Published: June 19, 2010
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+.2)^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 |24112.65 |

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...