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A P P E N D I X

/Users/user-f498/Desktop/03:02_evening/MHBR165:Larson:208

O N E

Solutions to Selected
Exercises
Chapter 2
2-2.

Payback 5 Investment/Annual Savings


Project Alpha: $150,000/$40,000 5 3.75 years
Project Beta: $200,000/$50,000 5 4.0 years
Project Alpha is the better payback.
2-5.

The only project SIMSOX should consider is Voyagers. Each of the other
two projects would not satisfy the high rate of return SIMSOX expects from
its projects.

Project: Dust Devils


Year

Inflows

0
1
2
3

50,000
250,000
350,000

Outflows

Net flow

Discount Factor

NPV

500,000

(500,000)
50,000
250,000
350,000

1.00
0.81
0.66
0.54

(500,000)
40,500
165,000
189,000
Total: $(105,500)

If calculated in EXCEL: $(106,020)

Project: Ospry
Year
0
1
2
3
4

Inflows
75,000
75,000
75,000
50,000

Outflows

Net flow

Discount Factor

NPV

250,000

(250,000)
75,000
75,000
75,000
50,000

1.00
0.81
0.66
0.54
0.44

(250,000)
60,750
49,500
40,500
22,000
Total: $(77,250)

If calculated in EXCEL: $(77,302)


611

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Solutions to Selected Exercises

Project: Yoyagers
Year

Inflows

0
1
2
3
4
5

15,000
25,000
50,000
50,000
150,000

Outflows

Net flow

Discount Factor

NPV

75,000

(75,000)
15,000
25,000
50,000
50,000
150,000

1.00
0.81
0.66
0.54
0.44
0.36

(75,000)
12,150
16,500
27,000
22,000
54,000
Total: $(56,650)

If calculated in EXCEL: $(55,714)

Chapter 6
6-3. Activity C is a burst activity. Activity G is a merge activity.

Group Term Paper

A
Identify
topic

Edit
paper

B
Research
topic

C
Draft
paper

E
Create
graphics

F
References

G
Final
draft

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Appendix 1

Solutions to Selected Exercises 613

6-11.
CP = A, C, E, G, J
115

130

15 Illumination
5

Survey

15
5

30

Legend
ES

ID

EF

130 15 145

Soils
report

10

25

15

20

35

35

Traffic
design

30

35

10

25

Lot
layout

30

130

25

35

35

35

Drainage

130

115

145 10 155

140

5 Landscape

125

155

Bid
proposal

145
140

120

135

120 25 145

35

SL Description
PARK AND RIDE
DESIGN

LS DUR LF

115 30 145

115

80 115

10

G 145
145

115

Approve
design

115

115

10

135

Signing

125 20 145

6-13.
9

Group Term Paper

Identify
topic

Research
topic

Draft
paper

11

Edit
paper

11

10

Create
graphics

0
11

10

11

10

11

Legend
ES

ID

EF

SL Description

1 References

LS DUR LF
0
Identify topic
Research topic
Draft paper
Edit paper
Create graphics
References
Final draft

10

11
10

11

12

12

Final
draft

12

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Solutions to Selected Exercises

6-20.
5
LAG 5

6
11

15

15

17
0

17

27

0
0

ID

EF

SL

LS DUR LF

SL

32

LAG 8

0
5

32

10

15

10

15

11

11

11

11

22

22

11

22

33

15

26

32

11

37

37

LAG 4

Legend
ES

LAG 5

LAG 7
0

27

LAG 10

LAG 10

25

15

25

The only activities that have the start or finish on the critical path are E and K

32
0

32

LAG 8

40
0

40

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Appendix 1

Solutions to Selected Exercises 615

Chapter 8
8-4.

10

Legend
ES

PLAN

ID RES DUR ES

10

10

12

10

10

12

10

LF SL 0

ID

SL

EF
SL

LS DUR LF
Resource

Use the following heuristics:


Minimum slack
Smallest duration
Lowest identification number

RESOURCE SCHEDULE
3
4
5
6
7

12

12

10

11

12

13

14

2
X

12

14

Resources scheduled

Resources available

15

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Solutions to Selected Exercises

8-7. You should not spend time planning how you are going to spend your bonus. The schedule will take
16 days.

10

10

10

12

10

10

12

PLAN
5

Legend
ES
Use the following heuristics:
Minimum slack
Smallest duration
Lowest identification number

EF

ID

SL

SL

LS DUR LF
Resource

ID RES DUR ES

LF SL 0

12

12

14

14

16

1
2

RESOURCE SCHEDULE
3
4
5
6
7
8

10

11

12

13

14

15

16

2
2
2

2
2
2

2
1

1
2

2
2

Resources scheduled

Resources available

17

18

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Appendix 1

Solutions to Selected Exercises 617

8-10.
4

2
0

Legend

10

ES

0
0

10

10

0
10

10

SL

12

EF
SL

LS DUR LF

0
2

ID

12

2
3

10

10

10

10

10

12

12

12

12

12

20

20

ID

Bu
dg

et

Cost by Week

40

10

10

10

10

32

48

10

11

12

8
12

12

12

18

28

12

40

Total

206

Cumulative

12

22

26

20

20

20

20

18

14

18

14

20

26

18

32

50

64

84

110 132 158 160 166 186 206

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Solutions to Selected Exercises

Chapter 9
9-2.
Activity

Normal
Time

Normal
Cost

Maximum
Crash Time

Crash
Cost

1
3
4
3
4
3

100
150
200
200
200
150

0
2
1
1
2
1

0
100
50
60
70
90

A
B
C
D
E
F

Normal
TIME: 12

3
F
3

1X

TIME: 11

Total direct cost: 1,050


Activities changed:

1X

TIME: 10

Total direct cost: 1,000

3X

C
50

Total direct cost: 1,120

Activities changed:

1X

E
70

TIME: 9

3X

Total direct cost: 1,210


Activities changed:

1X

2X

TIME: 8

3X

2X

F
90

Total direct cost: 1,340

Activities changed:

1X

2X

D E
60 70

3X

2X

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Appendix 1

Solutions to Selected Exercises 619

9-8.
Activity

Normal
Time

Normal
Cost

Maximum
Crash Time

Crash
Cost

3
4
3
4
2
3
2
4
2

150
200
250
200
250
200
250
300
200

0
2
1
1
0
2
1
2
1

0
100
60
40
0
30
20
60
200

A
B
C
D
E
F
G
H
I

Normal time: 17
Total direct cost: 2000

3X

CP=A+B+D+H+I

2X

Time: 16

Total direct cost: 2040

3X

3X

2X

CP=A+B+D+H+I
Activities changed:
D

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Solutions to Selected Exercises

Time: 15
Total direct cost: 2100

3X

3X

CP=A+B+D+H+I
Activities changed:
H

2X

Time: 14

Total direct cost: 2160

3X

3X

2X

2X

3X

CP=A+B+D+H+I
A+B+F+G+I
Activities changed:
H

Time: 13
Total direct costs: 2260

3X

3X

CP=A+B+D+H+I
A+B+F+G+I
Activities changed:
B

2X

2X

Time: 12

3X

Total direct costs: 2460

3X

3X

1X

2X

2X

CP=A+B+D+H+I
A+B+F+G+I
Activities changed:
I

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Appendix 1

Duration

Direct Cost

Indirect Cost

Total Cost

2000
2040
2100
2160
2260
2460

1500
1450
1400
1350
1300
1250

3500
3490
3500
3560
3660
3860

17
16
15
14
13
12

Solutions to Selected Exercises 621

The optimum time cost schedule would be 16 weeks at a cost of $3490.

Chapter 13
13-4.
Status Report: Ending Period 2
Task

($000)

% Complete

EV

AC

PV

CV

SV

75%
50%

30
16

25
12

20
12

5
4

10
4

46

37

32

14

A
B
Cumulative Totals

Status Report: Ending Period 4


Task

($000)

% Complete

EV

AC

PV

CV

SV

100%
100%

40
32

35
24

40
24

5
8

0
8

72

59

64

13

A
B
Cumulative Totals

Status Report: Ending Period 6


Task

($000)

% Complete

EV

AC

PV

CV

SV

100%
100%
75%
0%
50%

40
32
36
0
14

35
24
24
0
10

40
32
24
6
8

5
8
12
0
4

0
0
12
26
6

122

93

110

29

12

A
B
C
D
E
Cumulative Totals

Status Report: Ending Period 8


Task

($000)

% Complete

EV

AC

PV

100%
100%
100%
33%
100%

40
32
48
6
28

35
24
32
20
20

40
32
48
10
28

5
8
16
214
8

0
0
0
24
0

154

131

158

23

24

A
B
C
D
E
Cumulative Totals

CV

SV

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Solutions to Selected Exercises

Performance Indixes Summary

($000)

Period

EV

AC

PV

SPI

CPI

PCIB

2
4
6
8

46
72
122
154

37
59
93
131

32
64
110
158

1.44
1.13
1.11
.97

1.24
1.22
1.31
1.18

22%
35%
59%
75%

Forecast Costs at Completion


1BAC 2 EV2
1 AC
1EV/AC2
1206 2 1542
5
1 131
1154/1312

EACf 5

5 175
VACf 5 BAC 2 EACf
VACf 5 206 2 175
VACf 5 31
At the end of the 8th period three-quarters of the project has been completed at
a savings of $23,000. If the project continues to get $1.18 worth of work for each
dollar spent the project will be $31,000 under budget at completion. The project
appears to be slightly behind of schedule.
13-8. Part A
Status Report: Ending Period 1
Task

($000)

% Complete

25%

Cumulative Totals

EV

AC

PV

CV

25

50

50

225

225

25

50

50

225

225

Status Report: Ending Period 2


Task

($000)

% Complete

50%

Cumulative Totals

EV

AC

PV

CV

50

100

100

250

250

50

100

100

250

250

Status Report: Ending Period 3


Task
A
B
C
Cumulative Totals

SV

SV

($000)

% Complete

EV

AC

PV

CV

SV

100%
0%
0%

100
0
0

200
0
0

100
100
150

2100
0
0

0
2100
2150

100

200

350

2100

2250

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Appendix 1

Solutions to Selected Exercises 623

Status Report: Ending Period 4


Task

($000)

% Complete

A
B
C

100%
60%
50%

Cumulative Totals

EV

AC

PV

CV

100
150
225

200
100
200

100
150
300

2100
50
25

0
0
275

475

500

550

225

275

Status Report: Ending Period 5


Task

($000)

% Complete

A
B
C

100%
100%
100%

Cumulative Totals

EV

AC

PV

CV

100
250
450

200
200
400

100
250
450

2100
50
50

0
0
0

800

800

800

Status Report: Ending Period 6


Task
A
B
C
D

($000)
EV

AC

PV

CV

100%
100%
100%
75%

100
250
450
150

200
200
400
100

100
250
450
100

2100
50
50
50

0
0
0
50

950

900

900

50

50

Status Report: Ending Period 7

A
B
C
D
E
F

($000)
EV

AC

PV

CV

100%
100%
100%
100%
20%
5%

100
250
450
200
60
15

200
200
400
150
100
50

100
250
450
200
0
0

2100
50
50
50
40
235

0
0
0
0
60
15

1075

1100

1000

225

75

Status Report: Ending Period 8

A
B
C
D
E
F
Cumulative Totals

SV

% Complete

Cumulative Totals

Task

SV

% Complete

Cumulative Totals

Task

SV

SV

($000)

% Complete

EV

AC

PV

CV

SV

100%
100%
100%
100%
100%
10%

100
250
450
200
300
30

200
200
400
150
350
100

100
250
450
200
200
100

2100
50
50
50
250
270

0
0
0
0
100
270

1330

1400

1300

270

30

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Solutions to Selected Exercises

Performance Indixes Summary


Period
1
2
3
4
5
6
7
8

EACf 5
2105 5

($000)

EV

AC

PV

SPI

CPI

PCIB

25
50
100
475
800
950
1075
1330

50
100
200
500
800
900
1100
1400

50
100
350
550
800
900
1000
1300

.50
.50
.29
.86
1.00
1.06
1.08
1.02

.50
.50
.50
.95
1.00
1.06
.98
.95

2%
3%
5%
24%
40%
48%
54%
67%

1BAC 2 EV2
1 AC
1EV/AC2

VACf 5 BAC 2 EACf

12000 2 13302
1 1400
11330/14002

2105 5 2000 2 2105

With two-thirds of the project completed the forecast is that the project will be
$105,000 over budget at completion.
13-8 Part B.
Revised Estimates: Ending Period 14
Task

% Complete

EV

AC

PV

CV

SV

100%
100%
100%
100%
100%
100%
100%
100%

100
250
450
200
300
300
200
200

200
200
400
150
350
500
150
200

100
250
450
200
300
300
200
200

2100
50
50
50
250
2200
50
0

0
0
0
0
0
0
0
0

2000

2150

2000

2150

A
B
C
D
E
F
G
H
Cumulative Totals

EACre 5 AC 1 ETCre
VACre 5 BAC 2 EACre

2150 5 1400 1 750


2150 5 2000 2 2150

Revised Estimates indicate that the project will be one period behind schedule and
$150,000 over budget.

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