Question:

How long will be remaining six activities require?

Suppose that the following ten activities were agreed upon in a contract between an owner and an engineer. --- Original Work Plan Information Activity Duration (months) Predecessors Estimated Cost ($ thousands) A 7 B 5 9 C 8 D 4 1 T --- 7 G E, 6 H 4 E, F 5 I 11 B 10 E, F 7 Original Contract Information Total Direct Cost S64 Overhead 64 Total Direct and Overhead 128 Profit 12.8 Total Contract Amount $140.8 First Year Cash Flow Expenditures $56,000 Receipts $60.800 The markup on the activitics' costs included 100% overhead and a profit of 10% on all costs (including overhead). This job was suspended for one year after completion of the first four activities, and the owner paid a total of $60,800 to the engineer. Now the owner wishes to re-commence the job. However, general inflation has increased costs by ten percent in the intervening ycar. The engineer's discount rate is 15 percent per ycar (in current ycar dollars). For simplicity, you may assume that all cash transactions occur at the end of the year in making discounting calculations in answering the following questions: a. How long will be remaining six activities require? Suppose that the following ten activities were agreed upon in a contract between an owner and an engineer. --- Original Work Plan Information Activity Duration (months) Predecessors Estimated Cost ($ thousands) A 7 B 5 9 C 8 D 4 1 T --- 7 G E, 6 H 4 E, F 5 I 11 B 10 E, F 7 Original Contract Information Total Direct Cost S64 Overhead 64 Total Direct and Overhead 128 Profit 12.8 Total Contract Amount $140.8 First Year Cash Flow Expenditures $56,000 Receipts $60.800 The markup on the activitics' costs included 100% overhead and a profit of 10% on all costs (including overhead). This job was suspended for one year after completion of the first four activities, and the owner paid a total of $60,800 to the engineer. Now the owner wishes to re-commence the job. However, general inflation has increased costs by ten percent in the intervening ycar. The engineer's discount rate is 15 percent per ycar (in current ycar dollars). For simplicity, you may assume that all cash transactions occur at the end of the year in making discounting calculations in answering the following questions: a. How long will be remaining six activities require