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A consulting firm implement the project with the following data. Assume labor rate $ 400 per month. Activity Duration (Months) Fixed Cost (Thousands $ )
A consulting firm implement the project with the following data. Assume labor rate $ 400 per month.
Activity | Duration (Months) | Fixed Cost (Thousands $) | Labor Requirement (worker months) | |
A | 1-2 | 4 | 8 | 4 |
B | 1-3 | 3 | 9 | 4 |
C | 2-3 | 2 | 10 | 5 |
D | 2-4 | 4 | 12 | 6 |
E | 3-4 | 5 | 15 | 7 |
F | 3-5 | 6 | 12 | 6 |
G | 4-5 | 1 | 10 | 5 |
Requirements:
(a) Construct weekly expenses chart and cumulative expenses chart
(b) Compare the pattern of expenditure for both an early start schedule and a late start schedule.
(b) If the rate of interest is 12% per annum, compute the NPV for both the early start schedule and late start schedule.
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