Question
A project consists of the following activities Activity Preceding activity Duration (days) A - 9 B - 10 C B 4 D A 10 E
- A project consists of the following activities
Activity | Preceding activity | Duration (days) |
A | - | 9 |
B | - | 10 |
C | B | 4 |
D | A | 10 |
E | A | 5 |
F | A | 9 |
G | E | 7 |
H | D | 8 |
I | C,F | 7 |
J | G,H,I | 8 |
Required
- Draw a network diagram for the project
- Determine the activities of the critical path
- Determine the normal project duration
2.
- A community intends to invest in either project A or B. The initial investment outlay for the project is Ksh.1, 000,000. The following are the expected cash flows of each project.
Cash inflows (Ksh.) | ||
Year | Project A | PROJECT B |
1 | 200,000 | 300,000 |
2 | 450,000 | 600,000 |
3 | 350,000 | 200,000 |
4 | 200,000 | 200,000 |
The cost of capital is 12%
Required:
- Determine the Net Present Value (NPV) of each project.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
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