Question: You are to present two mutually exclusive projects A and B to the murder board of your project organisation. The aim of project A is
You are to present two mutually exclusive projects A and B to the murder board of
your project organisation. The aim of project A is to purchase and install solar panels for
Ghanaian homes to address the dunsorelectricity cuts challenges. The aim of project B is to purchase supersonic highspeed trains to connect cities in Ghana, to ease the pressure on the Ghanaian transportations system. The Ghana Government borrows from the World Bank Group at a discount rate for both projects at with the following cashflows for project A in million: $ $ $ $ $ $ Project B has the following cash flows in millions: $ $ $ $ $ $
Required:
i Determine the Net present values of both projects, and explain the reasons, which of
the projects you would like the murder board to reject
ii Determine the nondiscounted payback period for both projects, and explain the
reasons, which project you would like the murder board to reject.
B Study the Table below and answer the questions that follow
Required
i Determine the expected duration Beta Distribution of each activity and analyse your
answer in relation to the project activities schedule.
ii Determine the beta of each activity standard deviation and analyse your answer in
relation to the project activities schedule.
iii Determine the Range of the Estimate for each activity duration and analyse your
answer in relation to the project activities schedule.
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