Spend $$30,000$ for a car to save $$50,000$ or spend $$500$ for a bike to save $$3,000?$ Show why.

Are there other factors that could make the decision different? Name one that might be important and describe why in a short sentence.

b$.$ What is the future value of $$500$ in $1$ calendar year if you earn $0\mathrm{.}4\%$ daily interest?

c$.$ Assuming an average annual inflation rate of $3\%$ over the past $36$ years, how much money would you need today to have the spending power of $$30,000$ in $1984?$ Hint: Set the present value to the value in $1984.$

d$.$ You want to purchase a house. Which is better $-$ to purchase outright at $$200,000$ today, or invest $$200,000$ and earn $1\%$ a month for $10$ years then pay $$650,000$ for the same house after $10$ years. Show why.

II$.$ CPM Exercise

a$.$ Using the work breakdown structure below, create a CPM diagram. You may use the template provided on the last page of the assignment. Identify the critical path, and find the ES$,$ LS$,$ EF and LF for each of the activities $($tasks$)$ in the table below.

Activity

Predecessor

Duration $($days$)$

A

$5$

B

A

$4$

C

A

$5$

D

B

$6$

E

C

$3$

F

D$,$ E

$4$

ANSWERS:

I. Quantitative Factors in Choosing a Project

a$.$

b$.$

c$.$

ENGT $1000$ Introduction to Engineering Technology

HW: Project Management