You are preparing a project to lay fiber optic cable. 2023 Business Finance
2023 1 You are preparing a project to lay fiber optic cable The first
1. You are preparing a project to lay fiber optic cable. The first task is to mobilize the team. You estimate this will take one week and cost $3000. The second task is to lay the cable. This will take three weeks and will cost $45,000. The total length of the cable is 15 miles. The last task, which will take one week, is to Terminate and test the cable. You budget $5000 for this.
At the end of the first week, you have completed mobilization, but it cost a total of $4500.
At the end of the third week, you have completed five miles of cable at a total cost of $28,000 (installation only).
It takes you a total of 10 weeks to complete the entire project, for a total cost of $65,000.
a. At the end of week 1:
i. What is your SPI?
ii. What is your CPI?
iii. What is your EAC?
b. At the end of week 3:
i. What is your SPI?
ii. What is your CPI?
iii. What is your EAC?
c. At the end of the project:
i. What is your SPI?
ii. What is your CPI?
iii. What is your EAC?
2. Given the network below:
a. Draw and submit the AOA network
b. What is the critical path?
c. What is the duration of the network?
d. What is the normal (without crashing) cost?
e. What is the minimum duration?
f. What is the new price?
|
Task |
Pred |
Norm t |
Norm $ |
Crash t[1] |
Crash $ |
|
A |
– |
3 |
50 |
2 |
150 |
|
B |
A |
4 |
100 |
2 |
150 |
|
C |
A |
5 |
200 |
3 |
300 |
|
D |
B |
6 |
250 |
4 |
350 |
|
E |
C |
7 |
400 |
4 |
600 |
|
F |
D, E |
3 |
300 |
2 |
450 |
3. A task has a normal duration of 9 days and crash duration (the minimum duration) of 7 days. Its normal cost (total for 9 days) is $4000 and its crash cost is $10000 (total for 7 days). What is the crash cost per day?
a. $14000
b. $7000
c. $5000
d. $4000
e. $3000
4. A task is expected to take 20 hours of labor at $25 per hour (direct cost). The required material cost is $500. The organization adds a burden of 30% to all direct labor costs to account for overhead. It does not add any burden on top of material costs. The total task cost is:
a. $500
b. $1,150
c. $1,250
d. $1,300
e. $1,500
5. For the network shown here, calculate the following:
a. Mean duration (µ)
b. Variance (σµ2)
c. Standard Deviation (σµ)
d. Probability that the network can be completed in 50 days or less.
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