Question: A consulting firm implement the project with the following data. Assume labor rate $ 400 per month. Activity Duration (Months) Fixed Cost (Thousands $ )

A consulting firm implement the project with the following data. Assume labor rate $ 400 per month.

Activity

Duration (Months)

Fixed Cost (Thousands $)

Labor Requirement (worker months)

A

1-2

4

8

4

B

1-3

3

9

4

C

2-3

2

10

5

D

2-4

4

12

6

E

3-4

5

15

7

F

3-5

6

12

6

G

4-5

1

10

5

Requirements:

(a) Construct weekly expenses chart and cumulative expenses chart

(b) Compare the pattern of expenditure for both an early start schedule and a late start schedule.

(b) If the rate of interest is 12% per annum, compute the NPV for both the early start schedule and late start schedule.

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