This section contains two calculation questions. Answer BOTH questions. Each question accounts for 20 marks. Total 40 marks for this section. You MUST show all calculations.

Question 4 (20 marks)

A software project comprises the following activities, whose time estimates are given against each other as below:

Activity	Estimated Duration (weeks)
-	Optimistic	Most Likely	Pessimistic
1-2	3	6	15
1-3	2	5	14
1-4	6	12	30
2-5	2	5	8
2-6	5	11	17
3-6	3	6	15
4-7	3	9	27
5-7	1	4	7
6-7	4	19	28

1. Find the critical path for the project. (10 marks)

[Answer and show workings here]

1. Whatis the planned project duration? (10 marks)

[Answer here]

Question 5 (20 marks)

A potential five-year project has a projected net cash flow of $15,000 in each of Years 1 and 2 and $12,000 in Years 3-5.

The cost of the project, incurred in Year 0, is $50,000. The company's required rate of return is 10%.

[Answer here]

Year	Amount ($)	Discounter	NPV
0	-50,000
1	15,000
2	15,000
3	12,000
4	12,000
5	12,000
Total

a) Fill in the columns headed 'Discounter' and 'NPV' in the table above.(10 marks)

[Show workings here]

b) Advise the company as to whether or not to proceed with the project. Give reasons for your answer.(10 marks)