nternational Capital, Inc. $($IC$),$ is a small investment banking firm that specializes in securing funds for small to medium$-$sized firms. IC is able to use a standardized project format for each engagement. Only activity times and unusual circumstances change the standard network. Beth Brown has been assigned to this client as project page $254$manager partner and has compiled the network information and activity times for the latest client as follows:

Activity

Description

Immediate Predecessor

A

Start story draft using template

$$

B

Research client firm

$$

C

Create $$due diligence$$ rough draft

$$A$,$ B

D

Coordinate needs proposal with client

C

E

Estimate future demand and cash flows

C

F

Draft future plans for client company

E

G

Create and approve legal documents

C

H

Integrate all drafts into first$-$draft proposal

$$D$,$ F$,$ G

I

Line up potential sources of capital

$$G$,$ F

J

Check, approve, and print final legal proposal

H

K

Sign contracts and transfer funds

$$I$,$ J

Time in Workdays

Activity

Optimistic

Most Likely

Pessimistic

A

$4$

$7$

$10$

B

$2$

$4$

$8$

C

$2$

$5$

$8$

D

$16$

$19$

$28$

E

$6$

$9$

$24$

F

$1$

$7$

$13$

G

$4$

$10$

$28$

H

$2$

$5$

$14$

I

$5$

$8$

$17$

J

$2$

$5$

$8$

K

$17$

$29$

$45$

MANAGERIAL REPORT

Beth and other broker partners have a policy of passing their plan through a project review committee of colleagues. This committee traditionally checks that all details are covered, times are realistic, and resources are available. Beth wishes you to develop a report that presents a planned schedule and expected project completion time in workdays. Include a project network in your report. The average duration for a sourcing capital project is $70$ workdays. IC partners have agreed it is good business to set up projects with a $95$ percent chance of attaining the plan. How does this project stack up with the average project? What would the average have to be to ensure a $95$ percent chance of completing the project in $70$ workdays?

Case A$7\mathrm{.}2$