Ask Question, Ask an Expert


Ask Financial Accounting Expert

problem 1:

477_drawing network diagram.jpg

a) Draw the network diagram for the above project.

b) What is the normal duration for the project?

c) What is the normal cost?

d) A customer needs that the project be finished in 8 weeks and is willing to pay Rs 100,000 for that. As project manager, you are asked to give your recommendations on the feasibility (duration and profitability) of such a project. Take into consideration the fact that the company might have to pay a compensation of Rs 2000 per week, if the project is delayed beyond 8 weeks.

e) What could be the consequences of delivering projects late in the long run for a company?

problem 2: A brilliant UTM student at the end of his graduation is in presence of two opportunities and has to prefer between them. One is a job offer with a salary of Rs15,000 per month (with no other advantages except for one month end  of year bonus). It is expected that the monthly salary will increase on average by 10% every year for the first 5 years of his career. His personal costs amount to Rs5,000 per month and is expected to raise by 5% every year for the next 5 years. The next opportunity is the possibility of creating his own call centre which promises the given benefits: a steady revenue stream of Rs100,000 per month with a raise of 30% every year.

Operational costs for the call centre are about Rs65,000 per month and will raise by 10% each year  for the first 5 years. It is supposed that an investment of Rs500,000 will be needed in the second case that will be granted as an interest free loan by the Government with annual repayments of Rs100,000 over the next 5 years.

a) Summarize the net cash flows for each opportunity for a period of 5 years. For simplification purposes, ignore the effect of taxes (both corporate and income tax).

b) Compute the Net Present Value for each opportunity. Use 10% as discount rate.

c) Which opportunity is improved from the financial point of view?

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M96098

Have any Question? 

Related Questions in Financial Accounting

In chapter 4 we discussed the six sigma methodology for

In chapter 4 we discussed the six sigma methodology for process improvement (DMAIC). Give an example of how this process could be used to structure a spend analysis effort.

Time value of money practical applications in business and

Time Value of Money, Practical Applications in Business and Personal Decisions If you have put money in a savings account, made monthly auto or mortgage payments, or paid down your student loan ahead of time you have inh ...

Financial accounting multiple choice1 preparing a bank

Financial Accounting Multiple Choice 1) Preparing a bank reconciliation enables a company to ________. A) locate any errors, whether made by the bank or by the company B) make adjustments for transactions that have alrea ...

Assignemntrequireda download the spreadsheet for problemb

Assignemnt REQUIRED a. Download the spreadsheet for problem: b. Create formulas to calculate the following: • Accumulated depreciation (all assets use the straight-line method; all assets acquired any time during the yea ...

You may have to start with a free trial with a credit card

You may have to start with a free trial with a credit card and cancel directly after this module submission. Once QuickBooksTM is loaded, you may have to reboot your computer. Setting up company: Go to Home page, select ...

The ryde and rowe inc had the following account balances as

The Ryde and Rowe Inc. had the following account balances as of January 1: Direct Materials Inventory $ 8,700 Work in Process Inventory 76,500 Finished Goods Inventory 53,000 Manufacturing Overhead 0 During the month of ...

Project peyton approved instructionsfor this deliverable

Project Peyton Approved Instructions For this deliverable, you will complete the accounting cycle and prepare financial statements that will provide the result you need to assess the success of business operations. Below ...

Assignmentat this point you have examined three years of

Assignment At this point you have examined three years of financial statements for your firm and produced a proforma statement. You have also determined their sustainable growth rate as well. You have also learned about ...

Assume that you make and sell 7800 t shirts in the first

Assume that you make and sell 7800 t shirts in the first year. Use your cost formula to calculate your first years total cost. If you sell these shirrs at $15 each how much will the net profit be.

Assignmenta manufacturing company is thinking of launching

Assignment A manufacturing company is thinking of launching a new product. The company expects to sell $950,000 of the new product in the first year and $1,500,000 each year thereafter. Direct costs including labor and m ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro