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1. You have been appointed the head ofa project selection team Three different projects rebeing considered and are listed below. Your company expects arateo return ot at least 20% Given the information on each project would you recommend any of these projects and for which project would be the first priority? roject Year 1 Investment, Revenue Strearn, $ 700,000 700,000 100,000 75,000 25,000 10,000 Project 500,000 500,000 150,000 25,000 20,000 10,000 Project 200,000 200,000 125,000 75,000 20,000 10,000 2. informationir the table below, determine the a. Project network b Critical path(s) Project duration d. Project cost Activity Predecessors Duration (Days) Normal Cost, 100 140 G,H 12 240 F,I M J,K,L 3. You have prepared the following schedule for project whichthe kev resources are engineers There are three engineers available to the project Activities A and D require I engineer complete while activities S.C. and F require engineers Given the project information given below developa resource constrained schedule indloading chart Update each period is the computer would do Record the early start (ES) late finish(LS) and slack (SL) for the new schedule. Use the parallel method and the following heuristics: Minimum slack Smallest duration Lowest identification number Project Schedule Activity Engineers required Predecessor Duration 4 A 2 2 C,D,E 3 4. You have prepared the project information that is givenbelow Activity Predecessor Normal Normal Crash Cos Maximum Time Cost Crash Time A 3 20 50 11 A 60 90 50 o 100 100 D.E 50 70 Whati the normal critical path? Whatis the normal project duration? What ne normal project cost? List the critical path(s) and cost ifthe duration reduced to 16 days (Show all steps to reduce the duration incrementally)

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Answer 1:
The NPV method has been used to evaluate the relative attractiveness of the projects. Using the NPV function in financial calculator, the net present value (NPV) was found for each of the projects and the values are summarized below.
Project                   NPV                   NPV/Initial investment
1 $                        12,255.66                              0.02
2 $                      48,964.76                              0.10
3 $                      110,538.84                              0.55

As the NPV of the projects are positive, it means that all three of them are value-adding and can be undertaken....

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