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Presentation/PPT
27/08/2022
NET PRESENT VALUE ANALYSIS
1. NET PRESENT VALUE ANALYSISThe following are data for two IT projects for a new database system. Prepare a spreadsheet for two projects, using the following data. Amounts are in thousands of dollars. Calculate the NPV for each. (Please assume a Discount Rate of 10%)Year 1 Year 2 Year 3 Year 4 Year 5 TotalProject 1Benefits $0 $2,000 $3,000 $4,000 $5,000 tbdCosts $5,000 $1,000 $1,000 $1,000 $1,000 tbdCashflow ($5,000) $1,000 $2,000 $3,000 $4,000 $5,000Project 2Benefits $2,000 $3,000 $5,000 $3,000 $1,000 tbdCosts $2,000 $2,000 $2,000 $2,000 $1,000 tbdCashflow $0 $1,000 $3,000 $1,000 $0 $5,0002. NETWORK DIAGRAMMINGPrepare a precedence diagram for the following tasks. All tasks have a finish-to-start relationship.Task Duration Preceded By Followed ByA 1 None B, C, DB 2 A EC 3 A E, FD 4 A GE 5 B, C FF 6 C HG 7 D HH 8 E, F, G None3. GANTT CHARTPrepare a Gantt chart for the tasks shown for question 2.4. CRITICAL PATHDetermine the critical path for the tasks shown for question 2.5. RESOURCE HISTOGRAMYour company is planning to launch a new IT project starting July 1 that will last one year. You estimate that you will need one full-time project manager, two full-time business analysts for the first six months, two full-time senior systems analysts for the whole year,four programmers for the months of February-May, and one full-time technical writer for the last three months. Create a stacked column chart using Excel that shows resources by month. Provide appropriate titles, axes labels, and legends.6. MBTITake the MBTI. There are several websites you can use: www.humanmetrics.com, www.personalitytype.com, and www.kiersey.com. Write a one-page summary discussing your MBTI type and its opposite MBTI type. For example, if you are an INTJ, then its opposite is ESFP. What challenges would you see working with this person on a project? What you think about the MBTI as a team-building tool?7. PROJECT SELECTIONYour IT consulting company is trying to decide which of four projects to bid. Information on each is in the table below. Assume that all up-front investments are not recovered, so they are shown as negative profits. Draw a diagram and calculate the expected monetary value (EMV) for each project. Write a paragraph explaining which project(s) you would choose to bid.Project Chance ofOutcome EstimatedProfitProject 150% $100,00050% $-50,000Project 230% $100,00040% $50,00030% $-60,000Project 370% $20,00030% $-5,000Project 430% $40,00030% $30,00020% $20,00020% $-50,0008. PARETO DIAGRAMYour company has a technical support line for customers to call. Create a Pareto diagram based on the information in the following table. Create a spreadsheet using these data. List the most frequent complaint first. Then add a column labeled “% of Total” and another labeled “Cumulative %”. Then enter formulas to calculate these items. Then use the Excel Chart Wizard to create a Pareto diagram based on the data. Use the Line – Column on 2 Axis custom type chart so that your resulting chart looks similar to the one in Figure 8-1.Customer Complaints Frequency/WeekCustomer is on hold too long 90Customer gets transferred to wrong number 20Customer gets cut off 50Service rep cannot answer customer’s question 120Service rep does not follow through as promised 40Service rep is rude 109. PROJECT PLANNINGUse the following WBS and duration information for a project to build a new website. Prepare a Gantt chart and a precedence diagram. Determine the critical path.1. Initiating 1 week2. Planning 4 weeks, starting after Initiating ends3. Executing3.1 Conduct User Interview 6 weeks, starts after Initiating ends3.2 Conduct User Survey 4 weeks, starts midway through User Interviews3.3 Site Content3.3.1 Develop Templates 12 weeks, starts after User Interviews and User Survey end3.3.2 Write Articles 8 weeks, stats anytime after Site Content begins3.3.3 Prepare FAQ 2 weeks, starts after User Interviews and User Survey ends3.4 Design Site 8 weeks, starts after User Interviews and User Survey end3.5 Build Site 16 weeks, starts after Design Site ends3.6 Perform Integration Testing 2 weeks, starts after Build Site ends3.7 Conduct Acceptance Tests 2 weeks, starts after Integration Testing ends4. Controlling runs for entire duration of project5. Closing 1 weeks, follows Acceptance Testing10. COST MANAGEMENTIn the following information for a one-year software development project, answer the following four questions.PV = $23,000EV = $20,000AC = $25,000BAC = $120,000What are the cost variance, schedule variance, cost performance index, and schedule performance index for the project?How is the project doing? Is it ahead of schedule or behind? Is it under budget or over?Use CPI to calculate the estimate at completion (EAC)? Is the project per
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