A small project is composed of seven activities whose time estimates are listed in the table as follows: Activity Estimated

duration (weeks)
Optimistic Most likely Pessimistic

1 1 1 2 3 4 5

2 3 4 5 5 6 6

1 1 2 1 2 2 3

1 4 2 1 5 5 6

7 7 8 1 14 8 15

a) Draw the project network b) Find the expected duration and variance of each activity c) Calculate early and late occurrence time for each event. What is the expected project length

The following table gives the activities in a construction project and you are required to a) Draw the project network b) Find the total float and free float for each activity Activity I -- j 1 -- 2 1 -- 3 2 -- 3 2 -- 4 3 -- 4 4 -- 5 4 -- 6 5 -- 7 6 -- 7 Normal time (days) 20 25 10 12 5 10 5 10 8

The following table lists the jobs of a network along with their time estimates Job Duration I 1 1 2 2 3 4 j 2 6 3 4 5 5 Optimistic 3 2 6 2 5 3 Most Likely 6 5 12 5 11 6 Pessimistic 15 14 30 8 17 15

6 5 7

7 8 8

3 1 4

9 4 19

27 7 28

Draw the project network a) Find the expected duration and variance of each activity b) Calculate the variance and the standard deviation of project length c) Calculate early and late occurrence time for each event. What is the expected project length

The following table gives the activities in a construction project and you are required to c) Draw the project network d) Find the total float and free float for each activity Activity I -- j 1 -- 2 1 -- 3 2 -- 3 2 -- 4 3 -- 4 4 -- 5 4 -- 6 5 -- 7 6 -- 7 Normal time (days) 20 25 10 12 5 10 5 10 8

TF= Latest finishing time of the j activity earliest starting time of I activity expected time FF= Earliest starting time of j activity Earliest starting time of i activity expected time

Activity 12 23 24 35 36 46 47 58 68 78

Duration 2 3 5 4 1 6 2 8 7 4

a) Draw the project network b) Calculate total float and free float c) Identify the critical path

Capital cost of a project Rs. 50,00,000 Operating cost per month Rs. 1,60,00,000 WCR - 3 months Calculate a) total investment b) total cost of the project c) promoters contribution d) total borrowings margin money 25% for both WCF and LTD

X Company is considering investment in either one of the two alternative projects both with life of 5 years & the following information is given: Project A 2,00,000 60,000 60,000 Project B 1,60,000 80,000 70,000

Capital Investment Year 0 Inflow 1 2

3 4 5

60,000 60,000 60,000

60,000 50,000 20,000

Based on Pay Back Period technique, which of the projects would be chosen and why?

Ans: b) total investment = capital cost add: working cap. Requirement (1,60,00,000*3) Rs. 50 crores Rs 4.80 Rs. 54.80 crores a) cost of the project capital cost = add: 25% of Rs. 4.80 = 50 crores 1.20 crores

51.20 crores c) promoters contribution 25% of Rs. 51.2 crores d) total borrowing bank borrowing Term loan 75% of 51.2 = WCF 75% of 4.80 = total investment promoters contribution = Bank borrowing 12.80 crores 42.00 54.80 crores 38.4 crores 3.6 42.0 crores = 12.8 crores