2 Mulenga Incorporated uses discounted payback period (net present value) for projects under K25,000 and has a cut off period of 4 years for these small value projects. Two projects, R and S are under consideration. The anticipated cash flows for these two projects are listed below. If Mulenga Incorporated uses an 8% discount rate on these projects are they accepted or rejected? If they use a 16% discount rate? Why is it necessary to only look at the first four years of the projects' cash flows? Cash Flows Project R Project S Initial Cost K24,000 K18,000 Cash flow year one K6,000 K9,000 Cash flow year two K8,000 K6,000 Cash flow year three K10,000 K6,000 Cash flow year four K12,000 K3,000 [15+5 MARKSI QUESTION 3 The EIZ holds a national symposium every August of each year. However due to the COVID 19 it has been moved 15 December 2020. The symposium is organised by the EIZ secretariat. During the past three years, the attendance and quality of these National Symposia has being going down. An assessment has revealed that the main causes for this has been lack of communication, low quality of papers presented, absence of proceedings, and a reduction of paid up members. For this year's National Symposium, the EIZ Council has therefore decided to appoint a professional project manager to manage the National Symposium in this difficult period of COVID 19. It is also envisaged that a successful National Symposium would create awareness and contribute to membership building. Project Brief The EIZ contracted the project manager to manage the National Symposium and exhibition to be held over three days during the usual month of August. Specifically, the project manager will be responsible for planning, organising, coordinating and controlling the project. The Institute has allocated an amount of K15,000,000 for initial expenditure, but this has to be paid back out of the Symposium and exhibition proceeds. Companies have been approached for sponsorship and K15,000,000 has been raised. Funding over and above these amounts is to be generated through the Symposium and exhibition fees. The Institute expects the Symposium and exhibition to realize a net profit of at least K50,000,000. To achieve this target, at least 100 Symposium delegates and 20 exhibitors are needed. A minimum of 20 new members are expected to enroll as a result of the proceedings. Over the three- day period, approximately 2,000 visitors are expected to visit the exhibition. To attract both members and non-members, a quality professional programme highlighting nationally-known engineers as well as an international keynote speaker is planned. The project start date is 1 July and it is estimated to take 5 months. a) As the project manager you are required to draws up a project charter capturing the above parameters, for the EIZ management to approve. b) What would the priorities likely be for this project? [15 MARKS] 15 MARKS]