1. Two investments (A and B, below) have been proposed to the Capital Investment committee of your organization;

   1. The required rate of return for your company is 15%. What is the NPV for each investment?  Assume the initial investments ($150k and $50k) occur at the beginning of the year and all other costs and benefits occur at the end of the year indicated. Ignore inflation.

   2. What is the payback period for each investment?

   3. Which investment would you recommend and why?

   4. Why might you recommend the other investment?

1. You are still trying to get your engineering cost estimate for the Kuraiz-Reconda Fiber Optic Cable (KRFOC) project approved by your sponsor (remember IA-5?). In opening your morning mail, however, you see a proposal from Engineers ‘R Us to do all the KRFOC engineering for a fixed price of $60,000. Comparing that with your estimate of doing the work yourself (See the IA-5 question 2b School Solution):

2. What is the probability that the price for completing the work yourself will be less than the Engineers ‘R Us offer? Show all work.

3. Would you recommend the work be done in-house or accept the fixed price offer from Engineers ‘R Us? Why or why not?

6. Which of the following are activities and which are work packages?

   1. Project Plan

   2. Prepare the purchase order for a router

   3. System Design Package

   4. Install the foundation

7. Larry, Moe and Curly decide to make a movie. Being graduates of the university, and having aced PMAN 635, they decide to build a project plan using MS Project.  The attached file (Question 7- Fall 2019.doc) lists the activities and costs they think it will take to complete their movie.  Note that there are two tables in this file.  Using MS Project, what is the total duration and cost for their project?  Include your MSP project file with your submission.

8. Please answer each of the following:

   1. What is the expected time to complete a task with an optimistic (a), most likely (m), and pessimistic (b) times of 2, 4 and 7 days respectively?

   2. What is the standard deviation of the same task, assuming that 99.7% of the outcomes fall between a and b?

   3. What is the standard deviation of the same task, assuming that 90% of the outcomes fall between a and b?

DETAILED ASSIGNMENT

20201001194435assignment__fall_2020