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Help! an evaluation team projected the expected earnings from a project at the year 4 is $300,000. What is the net present value of the

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A project team gathered information necessary to consolidate 'Global Tea' and 'Organic Juice companies. The result of their consolidation data collection effort is shown in the table below i. Develop a network (may draw the network using computer or by hand \& scan): ii. Identify the highest slack time on activity (if there any) in the network ( 1 pt.) 6. What is the probability of completing the project by day 93 days given that project mean completion time is 87 days and standard deviation, is 32 ? (I pts.) Find the probability to complete the project in 93 days. Formula: Z=tste(or)==(vA2+vB2++vG2)93Te Z=(93)/()=findthevalue( Using Normal table, the P-value correspond to Z is Project Risks: 7. In a project, the probability of a occurrence of a high-priority risk (P) is 80%. The direct and indirect costs (C) involved in the project should the risk occurs are $25,000 and $10,000, respectively. What is the overall risk exposure (RE)? (0.5 pts) Hints: C= direct + indirect cost Overall risk exposure formula is RE=PC 4. Learning Curve (4 pts.) PerezBuild Corporation is a leading Manufacturer of communicntion Towers (such as selfsupporting towers, guyed towers, and monopoles) and had a contract to build 10 towers to support communication in a region. Suppose Perez Corps estimated their R\&D cost as 2,500,000. Expected material-related costs for each tower are $500,000 (that is, a total 5 million). They have estimated the design and production of the first tower. The estimated time to complete the first tower is 80,000 labor hours ( 300 days, 25 labor, and 8 hours per day, i.e., 300258=60,000 ). An 85% improvement (learning) curve is expected. Skilled labor cost is $80 per hour. Importantly, the project leader will add a profit margin, of 35% of the total cost in the estimate. What is the total cost with profit? i. How many labor hours should the tenth tower require? (0.5 pe) L ) babor hours ()=() labor hours for the 10th unit Hints: use Table A5.I (textbook) Learning Curves Unit Values ii. How many labor hours for the whole project of (all) ten towers? (0.5 pt.) () labor hours x()=(X1) total for 10 units Hints: use Table AS.2 (textbook) Learning Curves Unit Values iii. What total price would Perez Corps asks for the project ( 85% learning curve)? ( pt ) (ii) Uneven Cash Flows (1.5pts. A company has an option to pick a project between two projects. The estimated initial investment for Project Delta (out flow) is $600,000 in the first year. The estimated initial investment for Project Gamma (out flow) is $500,000 in the first year. The yearly revenue (in flow) for both projects is shown in the table below. Which project to pick based on the payback period? Project Delta: Project Gamma: Payback Period (Uneven Cash Flow) =A+CB A: Last period with negative cumulative cash flow B: Absolute value of cumulative cash flow at the end of Period A (or. cash remaining at the end of Period A) C: Net flow cash generated in the period immediately after A 6. What is the probability of completing the project by day 93 days given that project mean completion time is 87 days and standard deviation, is 32 ? (I pts.) Find the probability to complete the project in 93 days. Formula: Z=tste(or)==(vA2+vB2++vG2)93Te Z=(93)/()=findthevalue( Using Normal table, the P-value correspond to Z is Project Risks: 7. In a project, the probability of a occurrence of a high-priority risk (P) is 80%. The direct and indirect costs (C) involved in the project should the risk occurs are $25,000 and $10,000, respectively. What is the overall risk exposure (RE)? (0.5 pts) Hints: C= direct + indirect cost Overall risk exposure formula is RE=PC A. Near the end, Perez Corps received a request for an extension project of three additional towers. The customer negotiated with Perez for an 80% learning curve (instead of 85% before) (since Perez has already built 10 towers). The project leader wants to maintain 35% profit margin. What price will Perez Corps quote for the new project including the 35% profit? (2 pts.) Find protit ( 35%) Find total cost Including profit = Get the total estimate for the extension project 1. Net Present Value An evaluation team projected the expected earnings from a project at the Year 4 is $300,000. What is the Net Present Value of the Return rate is 20% ? (0.5pt) 2. Project Selection Using these project selection criteria, please rank and select the best project and briefly describe the rationale for the selection. Which is the best project? (0.5 pt) 3. Project Selection (Financial models) (2.0pts.) (i) Even Cash Flows (0.5 pt) A company plans invest $10.5 million in a project. The project leader expects $2.5 million per year for 8 years. Calculate payback period of the project. PaybackPeriod(evencashnow)=CastInflowperPeriodInitialInvestment

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