Q1) A project has annual cash flows (including the initial year) of -160,000, 70,000, 55,000, 70,000, 60,000, and 45,000, and a discount rate of 11%. The company should:
a. Accept the project because it will increase shareholder wealth.
b. Reject the project because it will reduce shareholder wealth.
c. Reject the project because the payback period is too long.
d. Accept the project because the payback period sufficiently short.
Q2) What percentage of the total project effort do you think should be devoted to planning? Why?
Q3) Describe the process of subdivision of activities and events that composes the tree diagram known as the Work Breakdown Structure.