International Capital Inc.

: PERT Analysis
International Capital Inc. (IC) is a small investment bank that specializes in
securing funds for small-to-medium sized farms. IC is able to use a standardized
project format for each engagement. Only activity times and unusual
circumstances change the standard network. The network information and
activity times for the latest client are given below:
Activity

Description

Immediate
Predecessor

Research client firm

--

Create due diligence rough report

Coordinate needs proposal with client

Estimate future demand and cash flows

Draft future plans for client company

Create and approve legal documents

Integrate all drafts into first-draft proposal

C,E,F

Line up potential sources of capital

G,E

Check, approve and print final legal

proposal

Sign contracts and transfer funds

H,I

Activity

Optimistic

Most likely

Pessimistic

10

16

19

28

24

13

10

28

14

17

17

29

47

Time in workdays

Construct the project network and using both statistical analyses as well as
Monte Carlo Simulation determine:
(i) The expected completion time for this project
(ii) What is the probability of completing the project in 85 days or less?
(iii) What is the probability that this project will exceed 90 days?