1.1 You are the project manager of medium size construction company. The Managing Director has instructed you to prepare a project for the construction of a 150 hectare residential area in a medium density suburb. The area will alsa include a modern shopping centre, school and hospital. The CEO has instructed that the construction should be completed within 2 years and then earns rent for 18 years thereafter Assume that you have done a similar project in Mutare, but on a 45 hectare area that was on hilly terrain as compared to the flat area in Harare. The table below shows the project cashfilows and required rate of return over the 20 year life of the project. 8% $2,000,000 400,000 420 10% 7% 50,000 7-20 $500 a) Calculate the NPV showing all workings. [10 Assume you have progressed 6 months into the construction phase of the project. The project sponsor has requested that you perform a project report. The reporting period is quarterly. At three months review, you found that each man laid 1,000 bricks a day instead of the planned 1,500. The project report highlighted that the project was behind schedule and was experiencing cost overruns b) Describe the performance of the project using the project metrics in the project guidebook for the 3d month of the project. [2) c) Describe some of the challenges you came across trying to implement these labour changes. [5] In this 6 month review, you have also discovered that delivery of cement is coming in late and you are having to incur extra costs from buying from alternative sources to ensure construction work continues. The supplier has apologised repeatedly and promised to improve. d) As the project manager, please detail your analysis of this problem and indicate how you intend to deal with the matter.[5) The project sponsor has just spoken with his finance director who has assured him that the project is going well at 6 months. The finance director has indicated that the budget indicates that at 6 months we had planned to spend $270,000, but we have an actual cost of $250,000 and therefore we are in surplus of $20,000. The Sponsor congratulates you for this e) Please comment on the project sponsor and finance director's opinion. 13)