Project Management

HW

Name:-------------------------------------------------ID:-------------------

Question 1 Use the following information in the table to answer question. (6 points)

Year Project A Project B

1150000 50000

2200000 150000

3250000 200000

4150000 300000

5100000 200000

Two projects A and B are available each costing $ 500000. In comparing the profitability of projects a discounted rate of 10% is to be used. Indicate which of the project is would be more profitable investment using

1. Discounted Payback period method

2. NPV method

3. Profitability Index

4. Undiscounted Payback period method

Question 2: The G&E Company is preparing a bid to build the new 47,000 seat Greendale baseball stadium. The construction must start July 1, 2017, and be completed in time for the start of the 2020 season. A penalty clause of $100,000 per day of delay beyond May 20, 2020, is written into the contract.

Ben Keith, the president of the company, expressed optimism at obtaining the contract and revealed that the company could net as much as $2 million on the project. He also said if they are successful, the prospects for future projects are quite good since there is a projected renaissance in building classic ball parks with modern luxury boxes.

Given the information provided in the following table, construct a network schedule for the stadium project and answer the following questions: (8.5 points)

1. Will the project be able to be completed by the May 20 deadline? How long will

it take?

2. What is the critical path for the project?

3. Based on the schedule would you recommend that G&E pursue this contact?

Why? Include a one-page Gantt chart for the stadium schedule.

ID	Activity	Duration (days)	Predecessor(s)
1	Baseball Stadium
2	Clear stadium site	70	-
3	Demolish building	30	2
4	Set up construction site	70	3
5	Drive support piling	120	2
6	Pour lower concrete bowl	120	5
7	Pour main concourse	120	3,6
8	Install playing field	90	3,6
9	Construct upper steel bowl	120	3,6
10	Install seats	140	7,9
11	Build luxury boxes	90	7,9
12	Install jumbo Tron	30	7,9
13	Stadium infrastructure	120	7,9
14	Construct steel canopy	75	10
15	Light installation	30	14
16	Build roof supports	90	6
17	Construct roof	180	16
18	Install roof tracks	90	16
19	Install roof	90	17,18
20	Inspection	20	8,11,13,15,19

Question 3: Using Apportion method, what are the estimated costs for the following deliverables if the total project cost $850 000. (5.5points)

Router systems project	100%
Definition (A activity)	15%
Design (B activity)	35%
Implementation (C activity)	60%
( sub activities /A)
Objectives	10%
Requirements	5%
( sub activities /B)
Inputs	15%
Outputs	8%
Files	7%
Programming	5%
( sub activities /C)
In house testing	32%
Customer testing	28%