Finance

Solution of the Assignment No. 1:

a.

Q

t

(1)

Q

C

(2)

C

t

(3)

Q

t

(1)

Q

C

(2)

C

t

(3)

1. Good quality needs more time so when time increases quality increases up till certain value then decreases.

2. Good quality needs more money so when cost increases quality increases.

3. At the closing phase of the project the Cost of the Project is decreases with time to its minimum value (optimum) then by increasing the time the cost will increased due to the indirect cost.

4.

b. PROJECT RESOURCES:

1. Machineries

2. Materials

3. Money

4. Manpower

5. Time

6. Subcontractors

c. STAGES OF ENGINEERING PROJECT:

1. Feasibility Studies

2. Design Stage

3. Contractor Selection (Tendering)

4. Construction Stage (Execution)

5. Commissioning and Warranty

d. BASIC FUNCTIONS OF PROJECT MANAGEMENT PROCESS

It is the optimization of project resources utilization to achieve the project objectives (Time-Cost-Quality)

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2. | fn = | ? | | | i= 9.5 % |

| P = | 9500 $ | | | n = 5 |

Fn=?

Fn=?

5 Yr

5 Yr

9500$

9500$

|

| P = | fn | | | |

| | (1+1)n | | | |

| | | | |

| fn =(9500) (1+0.095)5 =14955$ | | |

| | | | | |

3. | | | | | |

P1

P1

A=800

A=800

6 Yr

6 Yr

P=?$

P=?$

|

| P = | ? | | | A = 800 |

| | | | | n = 6 |

| | | | | i= 0.15 |

| P = | 800 | (1+0.15)6 – 1 | =7003$ | |

| | | 0.15 (1+0.15)6 | | |

| | | | | |

4. | | | | | |

P=7500$

P=7500$

fn=1000

fn=1000

2 Yr

2 Yr

|

| n=2 , | p = 7500 | f = 1000 | | |

| 7500 = | 1000 | i= 63.5%; Discount rate | | |

| | (1+i)2 | | | |

| | | | | |

| | | | | |

5. | fn = 500000 | | | n = 10 |

| | | | | i = 12% |

| | | | | i2 = 10% |

P8=3000$

P8=3000$

10 Yr

10 Yr

P4=3000$

P4=3000$

P10=?

P10=?

P=3000$

P=3000$

|

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a. | The reduction in the remaining 4...