QUESTION 3 VP Manufacturers is considering renovating their offices at their Durban head office. (40 Marks) 3.1 Use the generated information to calculate the NPV of the project, to decide whether to go ahead with the project. (20 Marks) Investment required Expected economic lifetime Minimum required rate of return R200 000 5 years. 10% Net annual cash inflows 1st year 2nd year 3rd year R40 000 R100 000 R90 000 R40 000 4th year 5th year R30 000 3.2 VP Manufacturers has decided to go ahead with the project. The following activities has been determined for the office renovation project. Construct a network diagram (AON) to create a graphical description of the operations and their relationship to each other. Identity the critical path for the project. Task/Number Duration (Days) Predecessors A 12 B 8 A C 4 A D 7 C E 6 B. D F 7 E (20 Marks) QUESTION 4 (20 Marks) There is a need for an organisation to manage its human, cost, and technological resources effectively. Therefore, project managers should ensure that the project environment is managed. Examine the pre- requisites for managing the environmental plan for a project of your choice.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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QUESTION 3
VP Manufacturers is considering renovating their offices at their Durban head office.
(40 Marks)
3.1 Use the generated information to calculate the NPV of the project, to decide whether to go ahead with
the project.
(20 Marks)
Investment required
Expected economic lifetime
Minimum required rate of return
R200 000
5 years.
10%
Net annual cash inflows
1st year
2nd year
3rd year
R40 000
R100 000
R90 000
R40 000
4th year
5th year
R30 000
3.2 VP Manufacturers has decided to go ahead with the project. The following activities has been
determined for the office renovation project. Construct a network diagram (AON) to create a graphical
description of the operations and their relationship to each other. Identity the critical path for the project.
Task/Number
Duration (Days)
Predecessors
A
12
B
8
A
C
4
A
D
7
C
E
6
B. D
F
7
E
(20 Marks)
QUESTION 4
(20 Marks)
There is a need for an organisation to manage its human, cost, and technological resources effectively.
Therefore, project managers should ensure that the project environment is managed. Examine the pre-
requisites for managing the environmental plan for a project of your choice.
Transcribed Image Text:QUESTION 3 VP Manufacturers is considering renovating their offices at their Durban head office. (40 Marks) 3.1 Use the generated information to calculate the NPV of the project, to decide whether to go ahead with the project. (20 Marks) Investment required Expected economic lifetime Minimum required rate of return R200 000 5 years. 10% Net annual cash inflows 1st year 2nd year 3rd year R40 000 R100 000 R90 000 R40 000 4th year 5th year R30 000 3.2 VP Manufacturers has decided to go ahead with the project. The following activities has been determined for the office renovation project. Construct a network diagram (AON) to create a graphical description of the operations and their relationship to each other. Identity the critical path for the project. Task/Number Duration (Days) Predecessors A 12 B 8 A C 4 A D 7 C E 6 B. D F 7 E (20 Marks) QUESTION 4 (20 Marks) There is a need for an organisation to manage its human, cost, and technological resources effectively. Therefore, project managers should ensure that the project environment is managed. Examine the pre- requisites for managing the environmental plan for a project of your choice.
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