SMJK Chung Hwa, M3Trial

Section A [45 marks]

Answer all questions in this section.
1.

2.

Activity Preceding activity Duration (days)

A
2
B
4
C
A
8
D
A
4
E
A, B
3
F
A, B, C
5
G
D, E
4
(a) Draw an AON network for the above project.
(b) Determine the minimum completion time of the project.
(c) Determine the critical path of the project.

[3]
[2]
[1]

Activity Preceding activity Duration (days)

P
5
Q
8
R
Q
6
S
P, Q
4
T
P
3
U
R
4
V
T
6
W
S, U
10
X
V, W
8
(a) Draw an AOA network for the above project.
[3]
(b) Determine the minimum completion time of the project.
[1]
(c) Determine the non-critical activities and their floats.
[2]
(d) Determine which activities can be delayed for 10 days without affecting
the minimum completion time. Give a reason for your answer.
[2]

3. A hardware shop stocks hammers with the following inventory record,

Working days = 250 days per year
Annual demand = 10000 units
Holding cost = RM2 per unit per year
Ordering cost = RM18 per order
Lead time
= 4 days
Using the EOQ model, find
(a) the economic order quantity
[1]
(b) the average inventory
[1]
(c) the annual ordering cost
[1]
(d) the annual holding cost
[1]
(e) the total annual inventory cost
[2]
(f) the number of order per year
[1]
(g) the time (number of days) between consecutive order
[1]
(h) the reorder point
[1]
4. Nicky and Micky want to buy a house that costs RM240000. They can afford
to put a 20% down payment towards the cost of the house and financing the
remaining on a 30-year mortgage at 7.5% per year with monthly payment.
(a) Find the monthly payment.
(b) How much Micky and Nicky pay in finance charges for the life of the
loan.
(c) After 20 years, what equity does he have in his house?
5. Vektum Bank pays interest at the rate of 4% annual compounded quarterly.
How much money will Meng Han have in the bank at the end of 5 years
(a) if he deposits RM250 at the end of each quarter?
(b) if he deposits RM250 at the beginning of each quarter.
6. A dishwasher was purchased by Ulala Restaurant on July 27 for RM2600.
The estimate useful life of the dishwasher is 16 years and trade-in value is
RM100.
(a) What is the amount of depreciation to the nearest cent at the end of third
year?
(b) A convey with an estimated useful life of 20 years and a final book value
of RM700 was purchased for RM7000. Using the reducing balance depreciation
method, find the book value at the end of the third year.

Section B [15 marks]

Answer one question in this section.
7.

Preceding
Duration
Number of workers
activity
(days)
required
P
2
3
Q
4
4
R
P, Q
5
8
S
P
4
3
T
R, S
3
2
U
T
3
6
V
P
2
1
W
U, V
2
4
(a) Draw an AOA network for the above project
[5]
(b) Draw a Gnatt chart for the project
[5]
(c) Draw a Resource Histogram for the workers required if all activities start
as early as possible. What is the minimum number of workers required at any
given time in order for the project to complete in minimum time. [3]
(d) If rescheduling is only allowed for activity V which is delayed by 3 days,
determine the new minimum number of workers, required at any given time
to complete the project.
[2]
Activity

8. Pelangi Condominium association wants to establish a sinking fund to

accumulate RM250000 in 3 years to repair the roofs. The fund earns 9% interest
compounded monthly.
(a) If there 200 units in the condominium, how much should each unit
owner be assessed each month as a fair contribution into the fund? (Assume that
all unit are of equal size and hence have equal assessments)
(b) How much does the sinking fund earn?
(c) Verify the result by completing the following sinking fund schedule.
End of
Payment Accumulated Cumulative
Cumulative
period
made
Interest RM) Deposit (RM) Deposit (RM)
1
12
24
36

Marking scheme:
1. (a)

(b) Minimum completion time of the project = 15 days

(c) A C F

[3]
[2]
[1]

2. (a)

[3]
[1]

(b) Minimum completion time of the project = 36 days

(c)
Non critical activities
Total float
P
9
S
6
T
14
V
14
[2]
(d) Activities T and V can be delayed because total floats are 14 which
exceed 10.
[2]
3. n = 250, D = 10000, Ch = RM2, C0 = RM18, l = 4
(a)

2 DC0
Ch

2(10000)(18)
2

(b) average inventory =

Q
2

= 424 units
424
2

(c) Annual C0 =

D
10000

C0 =
18
424
Q

(d) Annual Ch =

Q
424

Ch =
2
2
2

[1]

= 212 units

[1]

= RM424.53

[1]

= RM424

[1]

(e) Total annual inventory cost = 424.53 + 424 = RM848.53

(f) Number of order per year, N =
(g) T =

n
N

250
24

= 10.42 days

(h) reorder point, r = dl =

D =

l
n

10000

424

10000

4
250

= 24 orders

[2]
[1]
[1]

= 160 orders

[1]

4. (a) RM240000 x 80% = RM192000

Monthly payment =

0.075

12
192000
0
1 1 .075
12

= RM1342.49

3012

Total finance charges = (1342.49 x 360) 192000 = RM291296.40

(c) After paying 20 years, left 10 years
(b)

Present value =

1 1 0.075
12

1342.49
0.075

12

120

= RM113097.60

The amount paid on the loan = borrowed P.value

= RM192000 RM113097.60
= RM78902.40
Equity = d.payment + loan paid = 48000 + 78902.40 = RM126902.40
5. r = 4%, RM250 for 5 years

(a) At the end of 5 years =

3

250

0.04

4
0.04
4

20

= RM5504.75

(b) 5504.75 x 4% x 12 = 55.05

5504.75 + 55.05 = RM5559.80
6. (a) Amount of depreciation =

2600 100
16

= RM156.25

First year: 156.25 x 12 = 65.10

Second and third year: (156.25 x 2) + 65.10 = RM377.60
(b) n = 20 years, book value = 700, purchased = 7000, rate = ?
r=1

1
t

=1

700

7000

1
20

= 0.1087 10.9%

Book value at the end of 3rd year = B0(1 r)t = 7000(1 0.109)3
= RM4951.44
Section B
7. (a)

Delayed by 3 days = 5

[3]

Q R T V W, 17 days
(b)

(c) Minimum number of workers = 11

(d) 12 workers
8. RM250000 for 3 years, Fund earns 9% compounded monthly
(a) 200 unit - ? each unit owner
R=

A
n
(1 i ) 1

0.09

12

250000
(1 0.09 )123 1

12

= RM6074.93

(b) 250000 (6074.93 x 36) = RM31302.52

End of Payment Accumulated Cumulative
Cumulative
(c)
period
made
Interest RM) Deposit (RM) Deposit (RM)
1
6074.93
0
6074.93
6074.93
12
6074.93
3083.55
6074.93 x 12
75982.71
24
6074.93
13294.81
6074.93 x 24
159093.13
36
6074.93
31302.39
6074.93 x 36
249999.87
A=

1 0.075 12 1

6074.93

0
.
075