Q. 1 A consulting firm implement the project with the following data.

Assume labor rate $

400 per month.

Activity Duration Fixed Cost Labor Requirement

(Months) (Thousands $) (worker months)
A 1-2 4 8 4
B 1-3 3 9 4
C 2-3 2 10 5
D 2-4 4 12 6
E 3-4 5 15 7
F 3-5 6 12 6
G 4-5 1 10 5

Requirements:

(a) Construct weekly expenses chart and cumulative expenses chart

(b) Compare the pattern of expenditure for both an early start schedule and a late start
schedule.
(b) If the rate of interest is 12% per annum, compute the NPV for both the early start
schedule and late start schedule.