Question: ( a ) You have recently jointed a civil engineering company and been appointed as a new project manager of an ongoing 1 . 3

(a) You have recently jointed a civil engineering company and been appointed
as a new project manager of an ongoing 1.3 million renovation project of a
hospital. The project has already been delayed and has overruns. You have
noticed that your staff is highly qualified and skilled but demotivated and not
fully dedicated to the project.
(i) Elaborate on why feedback is important and what are the methods used
to provide the feedback.
(ii) Demonstrate how you would provide feedback to your staff?
[6 marks]
(b) Your company wishes to purchase a new machine for a four-year project.
Your manager has to choose between Machine A and Machine B, so it is a
mutually exclusive situation. Although both machines have the same initial
cost (35,000) their cash flows perform differently over the four-year period
due to different labour, material and maintenance costs (see Table Q3).
Your manager wishes to use the net present value (NPV) as a measure of
the value or worth added to the company by carrying out the project. You
are asked to:
(i) Estimate the NPV for each machine based on a discount factor of 20%.
(ii) Based on NPV analysis, advise if investing in either of these machines
is acceptable.
(iii) Recommend which machine to invest in and give your reasons.
[10 marks]
4
PTO
(c) You are a project manager of a small civil engineering project of planned
duration of 5 months and budget of 140,000. Your latest monitoring report
shows the following data: PV =41,000, EV =35,000, AC =38,000.
Determine the health of the project.

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